Artificial intelligence is fast becoming Britain’s most popular financial adviser, with more than half of adults now using platforms such as ChatGPT to help them make decisions about money, according to new research commissioned by Lloyds Banking Group.
The study found that 56 per cent of UK adults — equivalent to 28.8 million people — have turned to AI tools for guidance on budgeting, savings, pensions and even investments. Financial advice has overtaken all other uses of AI, cited more often than help with writing emails or work documents (29 per cent), recipes (20 per cent), medical queries (17 per cent) or career advice (14 per cent).
Researchers said the findings show how quickly AI has entered mainstream decision-making since becoming widely available less than three years ago, but warned that the trend also exposes consumers to new risks.
Jas Singh, chief executive for consumer relationships at Lloyds, said: “AI is empowering millions to feel more confident about their financial decisions — but it’s vital they receive information they can trust.”
The study of 5,000 adults found that one in three people uses an AI tool at least once a week for financial information or advice. Many users seek practical help — such as drawing up budgets — but others ask for recommendations on pensions, investments and tax, areas that would normally require regulated professional advice.
Unlike banks or investment firms, which face strict rules on what they can tell customers, AI platforms are entirely unregulated. This raises the risk of people acting on incorrect or misleading information, with no legal protection if things go wrong.
Despite those dangers, awareness among users remains mixed. Around 80 per cent of respondents said they were worried about receiving inaccurate advice, and 83 per cent expressed concern about data privacy — yet usage continues to grow rapidly.
Experts say the boom reflects a deeper problem in Britain’s financial system: the “advice gap”, where millions of people cannot afford the roughly £1,000 it costs for a traditional financial adviser to conduct a full review of their affairs.
ChatGPT, the AI chatbot developed by OpenAI, was the most widely used tool, cited by six in ten respondents, followed by Google’s Gemini, Microsoft’s Copilot, and Meta’s AI assistants built into WhatsApp and Facebook.
Users reported saving an average of £399 a year through AI-assisted money management, suggesting the technology is helping people make more informed day-to-day decisions — at least in the short term.
The Financial Conduct Authority (FCA) is preparing to introduce new “targeted support” rules by late 2026, allowing regulated firms to provide more tailored guidance without a full financial fact find. However, the Lloyds study suggests consumers are already far ahead of the regulatory curve.
The FCA has acknowledged AI’s potential to simplify complex information and improve accessibility, but it continues to stress that human judgment remains essential. The regulator is understood to be considering website updates to help consumers understand both the benefits and the limits of generative AI.
Consumers who act on AI-generated recommendations are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme if they suffer financial losses.
Financial experts warn that while AI can make financial knowledge more accessible, it also risks normalising unverified advice.
Ignorance, fear of risk and frustration with the complexity of financial products have long pushed people toward poor decision-making, the report notes. AI, by offering quick and personalised answers, could help bridge that gap — or, without oversight, widen it.
As Singh concluded: “Technology can help people take control of their money, but it cannot replace trust. The future of financial advice must combine innovation with responsibility — and ensure that confidence doesn’t come at the cost of protection.”
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Half of UK adults now use AI for financial advice, study finds