Over a Quarter of Americans Would Allow AI to Plan Retirement
American investors are warming up to the idea of artificial intelligence (AI) technology, especially when it comes to managing their finances.
A survey by Advance America, a consumer lending firm in the U.S., asked over 3,000 U.S. adults about their likelihood in trusting AI-powered tools to oversee their money.
Of the responses, 31% said they would let AI choose stocks for their portfolio, 22% said they would allow AI to purchase cryptocurrency, 15% would permit the technology to rebalance their 401(k) accounts, and 31% would trust AI in helping them file their taxes.
The findings also showed that some would rather engage with the technology than with a human partner, and more so when strategizing for retirement. A quarter (25%) of respondents said they would trust AI more than their current financial advisor, and 28% would even let the technology plan their retirement for them.
The findings highlight a shifting landscape for retirement industry professionals, many who are strategizing how to work AI technology into their practices while underscoring the value of working with human advisors.
While industry experts have recommended using the technology to complement financial planning, most recommend against utilizing it as a sole strategy.
“AI can be a valuable starting point when researching your financial options — especially for budgeting, comparison shopping, or exploring different investment strategies,” says Laura McCutcheon, vice president of Marketing at Advance America. “But ultimately, major decisions about your money should factor in your unique circumstances, goals, and risks. Those are things AI still can’t fully understand. Think of it as a co-pilot, not the captain.”
Across the U.S., Americans said they would trust AI to manage $20,000 on average. California investors led the way, with the average investor permitting the tool to oversee $26,788. Wyoming residents were much more cautious of AI—only allowing the technology to manage $3,571. Middle America felt more open to the idea, with states like Iowa, Kansas, and Indiana ranging from $13,000 to $16,000.
Other states, like Massachusetts and Maryland, were wary of the tool and preferred the reassurance and connection in working with a human partner, like a financial advisor, instead.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
