Cleo AI research shows that young people are turning to artificial intelligence for financial advice to help them manage their money and develop more sustainable financial habits.
The study surveyed 5,000 UK adults aged 28 to 40 and found that the majority were saving significantly less than they would like. In this context, interest in AI-based money management tools is increasing. One in five respondents said they were interested in using AI to manage their finances, and a further 12% said they were excited about the possibilities.
However, despite the interest in leveraging AI in these situations, trust in personal financial management remains low. More than a third (37%) of respondents reported struggling with self-control when it comes to money, and impulsive spending often prevents them from meeting their savings goals. Four out of five people believe they can improve their financial knowledge, pointing to a gap between intentions and actions.
Adults between the ages of 28 and 34 are about 15% more satisfied with their savings and save about 33% more each month on average than adults between the ages of 35 and 40. The findings suggest that while financial burdens accumulate as people move into early adulthood, access to effective and ongoing support does not increase at the same rate.
AI in money management
AI is seen as a tool that may help take back financial control. Many respondents expressed comfort in using AI for day-to-day financial operations. Almost two-thirds (64%) said they would trust AI to advise them about their disposable income, and more than half would allow AI to move funds to avoid overdrafts (54%) or manage regular bill payments (52%).
Cleo CEO and founder Barney Hussey-Yeo says structural economic pressures are a key factor. Rising costs of living, stagnant salaries, low wages, and debt mean that many people are not spending their money incorrectly, but rather don’t have enough money to make it worth managing. In this context, AI tools are positioned not as tools for ambitious financial planning, but as practical everyday aids that work with very limited funds at their disposal.
Younger respondents are driving adoption. Adults aged 28-34 are 8% more confident in using AI-powered financial tools than adults aged 35-40. But trust remains a barrier. Almost a quarter (23%) of respondents prefer to start with limited use of technology and believe they need proof of value before making significant efforts.
The research also highlights the regional disparities that are evident in the UK. The average monthly savings in the wealthy South is 26% higher than in the North. London residents save 33% more than the national average and around £250 more per month than Norwich residents. London (£431), Brighton (£401) and Edinburgh (£386) report the highest average monthly savings, while Newcastle (£185) and Cardiff in Wales (£184.95) are at the bottom.
Implications for FinTech decision makers
The strongest signal in this evidence is not enthusiasm for AI itself, but requests for support under economic stress. Lack of self-discipline (37%) and lack of confidence in financial knowledge (80%) are more likely to be cited, indicating that implementation is a secondary issue.
Trust is not a secondary concern; it is an important factor. Although there is a strong willingness to delegate tasks such as overdraft avoidance, around a quarter of users want additional evidence before committing. This favors modular product design and specific implementation in software over full automation from the beginning. There is evidence that proven utility, not brand positioning, gains adoption.
Differences by age within a relatively narrow cohort (28–40 years) are significant. The sharp decline in savings satisfaction and contribution between the ages of 35 and 40, when many people take on more responsibilities and financial burdens, suggests that fintechs targeting only young professionals may be missing out on people with vastly different needs. For older Millennials, tools that address cumulative obligations (housing, dependents, legacy debt, bills) may be more relevant.
Regional savings gaps are large and persistent, with London’s outliers (areas with higher average incomes) masking much weaker savings capacity elsewhere. This weakens the case for uniform products across the country. Regional bias in pricing, thresholds, and nudges in the form of notifications and in-app messages may be needed to ensure the product feels real outside of high-income urban centers in the south of England.
(Image source: “Iced tea at Georgia’s” by Ed Yourdon is licensed under CC BY-NC-SA 2.0.)
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