Consumers speak up on AI in financial services

But while the technology promises faster decisions, better fraud detection and smarter tools, it’s creating new challenges too. Companies are grappling with how to balance innovation with consumer trust, data ethics and fairness – all while keeping a human touch in the mix.

In this article, we explore what consumers in the US and UK really think about AI in their banking, credit, investment and budgeting tools, using new data from our own consumer research. The data highlights where AI is welcomed, where it triggers discomfort, and what financial services providers need to do if they want to build lasting confidence in AI-powered products.

Take a look at our interactive dashboard to dig into responses and segments. 

Quick summary

Here’s our TL;DR summary of the latest insights on AI in financial services:

• 62% of Americans are comfortable with AI detecting fraud – the most trusted use case.
• 59% of Brits want full transparency about how and when AI is used by their financial providers.
• 58.5% of Americans and 59% of Brits want the option to speak to a human at any time, even when AI is involved.
• 56% of Americans and 55.5% of Brits expect AI to improve their finances in the next five years.
• 47% of Americans and 45% of Brits are comfortable with AI making loan or credit card decisions, with around 30% feeling actively uncomfortable – showing hesitancy in high-stakes areas.
• Top concerns include data privacy, loss of human interaction, AI errors, job displacement and algorithmic bias.

US AI in finserv insights

Americans are tentatively comfortable with AI

We asked our US respondents how comfortable they’d be with AI being used in a few key areas of their financial lives. For every option, a majority of Americans say they’re either comfortable or very comfortable:

• Detecting fraud or suspicious activity – 62% are either comfortable or very comfortable
• Personalised offers or product recommendations – 62% 
• Budgeting help or spending insights – 60.5%
• Customer service – 56% 
• Investment advice or portfolio management – 47%
• Loan or credit card approval decisions – 47%

We generally see younger groups – particularly those aged 25–44 – are significantly more comfortable than older groups. However the youngest group – people aged 18–24 – don’t show the same enthusiasm as those other younger groups. 

There’s also a gender split when we look at the crosstab. For each option, males are more comfortable than females. We found that females show more indifference or clear discomfort with most elements of AI in financial services. 

Three fifths still want a human option 

Our results show that three fifths (58.5%) of Americans still want the option to speak to a human at any time, to help them trust financial services that use AI. 

Meanwhile half of our respondents (51%) want to know their data is handled securely and ethically. Almost 40% want to see a strong track record of fair and accurate decisions, and 38% want a clear explanation of how the AI works.

Looking again at the gender split, females show a greater desire for almost all the options. But males over-index for wanting to see a strong track record and for independent audits or regulation. 

Most people think AI will improve their finances

Over half (56%) of Americans told us they think AI will improve their personal finances in the next five years. This percentage rises to 65% for people aged 18–34, but then shows a downward trend as we work our way up the age groups. 

We found that 15% of people think their finances will be harmed by AI. There’s a cliff between the 35–44 and 45–54 age groups: 12% of the former said AI will harm their wallet, while 20% of the latter said the same. 

Males remain positive about AI’s effect on their finances: 64% said they expect theirs to improve because of AI, compared to 48% of females. 

US shoppers want AI transparency

Well over half (55%) of our respondents said they want full transparency from their financial providers about when and how they use AI. A further 26% want a basic overview, as long as they can get more detail if they want it. 

Only 3% of Americans from our survey don’t need to know about AI from their financial providers, as long as the service works well. And 9% said they’d prefer not to have AI used by their providers at all. 

What are Americans’ main concerns about AI in finserv?

We asked respondents to tell us what concerns them most about the use of AI in financial services. Here’s our AI summary of their responses:

• Data privacy and security concerns are the most prevalent, with many fearing personal information could be leaked, stolen or hacked through AI systems.
• Lack of human interaction is a significant concern, with respondents preferring to speak with real people for financial advice and problem-solving rather than relying on AI.
• Fear of AI errors and inaccuracies that could lead to financial losses, incorrect financial advice, or unfair decisions in lending or credit scoring.
• Concerns about job displacement as AI replaces human workers in the financial services sector.
• Algorithmic bias and transparency concerns, with worries that AI might make unfair decisions without clear explanations of how conclusions are reached.

UK AI in finserv insights

Brits show general comfort with AI in finserv

Our respondents said they were mostly comfortable or very comfortable with AI being used in all of the options we gave them:

• Detecting fraud or suspicious activity – 63.5% are either comfortable or very comfortable
• Personalised offers or product recommendations – 63% 
• Budgeting help or spending insights – 62%
• Customer service – 55% 
• Investment advice or portfolio management – 43%
• Loan or credit card approval decisions – 45%

However, a still significant 31% of Brits said they’d be uncomfortable with AI being used for investment advice or portfolio management, and 30% would be uncomfortable with it being used for loan or credit card approval decisions. 

And although we generally see younger groups showing more comfort with AI and older groups expressing greater discomfort, the youngest age group throws us a curveball. People aged 18–24 don’t show any notable increase in comfort with AI in finserv. In fact the only option they over-indexed for was for a greater level of discomfort with AI being used for loan or credit card approval decisions. 

UK shoppers want access to a human

Three fifths (59%) of our UK respondents want the option to speak to a human at any time – this is what would make them more likely to trust financial services that use AI. 

Meanwhile 52% want to know their data is handled securely and ethically, and 39.5% want to see a strong track record of fair and accurate decisions. 

One interesting outlier is that people aged 25–34 are particularly keen to see positive reviews or recommendations from other users. Almost half (47%) of that age group chose that, compared to the UK average of 34%. 

More than half expect personal finance improvements due to AI

Over half (55.5%) of our UK respondents said they expect their personal finances to improve in the next five years as a result of AI. There’s particular optimism from younger groups, with 67% of 18–24s and 78% of 25–34s expecting improvements. 

Just 11% of respondents said they thought their finances would be harmed by AI. Interestingly, we see the youngest group – those aged 18–24 – show an uptick here, with 16% expecting AI to harm their finances. 

Brits want full AI transparency

Almost three fifths (59%) of Brits say they want full transparency from financial providers about how and when they use AI. Interestingly we see this percentage jump to 68% for people aged 25–34, a group that also shows greater keenness overall for AI financial services. 

A quarter (24%) of our respondents would like a basic overview of AI in their financial services, as long as they can get more detail if they want. 

Only 2% of Brits don’t need any transparency, and a further 6% would prefer not to have AI used at all for their finances. 

Privacy and human connection are Brits’ top concerns

We asked our UK respondents to tell us what concerns them most about the use of AI in financial services. Here’s our AI summary of their responses:

• Data privacy and security concerns, including fears about personal information being accessed by hackers, leaked or misused
• Lack of human interaction and oversight, with worries about not being able to speak to a real person when needed and missing the personal touch
• Concerns about accuracy and reliability of AI systems, including potential errors in financial decisions and advice
• Fears about bias, discrimination, and lack of transparency in AI decision-making processes
• Job displacement concerns as AI automation replaces human workers in financial services

Take a look at our interactive dashboard to dig into responses and segments.