For years, financial services firms have provided content-heavy, generic guidance often leaving consumers to do the hard work of translating information into financial decisions. AI is changing that dynamic. Nearly half Gen Z and Millennial US online adults who invest and are aware of AI are comfortable with investment firms using AI to provide financial advice directly to consumers, compared to just 26% of the older generation (Gen X, baby boomer, and silent generation). This gap suggests that younger consumers are increasingly open to receiving AI‑powered financial advice that interprets their context, compares options, and makes recommendations.

Private v Public AI: Explaining And Personalizing Matter More Than Informing

Traditional financial services firms’ information advantage is eroding at the top of the funnel. US online adults report nearly identical comfort levels with private and public genAI tools. A generational divide in comfort with advanced uses of financial institutions’ private AI is only making it worse. Younger generations’ familiarity with technology make them more comfortable using genAI tools for financial guidance. Financial services firms can stand apart with private AI tools that explain products and services in plain language, provide fast and clear comparisons, and personalize advice and make it easy for customers to understand what it means.

Humans Still Matter: AI Has Trust Ceiling

AI adoption is rising but customer trust will determine how far it can go. Consumers are still concerned about whether AI can reliably deliver actionable recommendations, handle sensitive data responsibly, and meet regulatory requirements. While many consumers are comfortable using AI to answer product questions, less than a third are comfortable letting it complete a transaction on their behalf. The closer AI gets to executing tasks, the higher the bar for trust.

Deliver Contextual Guidance At Scale Without Losing Human Accountability

Transparency, clear governance, and visible human oversight are essential to expanding the role of AI in customer-facing financial experiences. To meet rising consumer expectations, financial services firms must evolve conversational AI in two ways:

  1. Recognize that consumers expect clear, relevant, contextual guidance, and will seek out the means (human or AI tools) to get it. Financial institutions need to move from static guidance to dynamic, contextual, personalized, and actionable recommendations. Ensure that boundaries are clearly set so that consumers retain control, accountability is clear, and data is handled responsibly.
  2. Make trust the cornerstone of the customer experience. Consumers want AI’s efficiency and guidance, but only within a framework where humans remain accountable and present at key decision points. AI works best in hybrid models where it delivers speed and efficiency, while human oversight ensures accountability and confidence at critical moments in the financial journey. Like a lifeguard standing watch at a pool, a human in the loop assuages users’ fears of AI without direct interaction.

 

 

 

A conceptual image illustrating how the ‘human in the loop’ is akin to a lifeguard at a swimming pool, helping to assuage users’ fears of AI without direct interaction.

 

Read Brian Musaka and my latest report, “Consumer Comfort With AI In Financial Services“, for a deep dive into these insights. Got a question? Book a guidance session with me.