More than 28 million UK adults are now using AI to help manage their personal finances, according to new research from Lloyds Banking Group, with consumers using the tech to find better ways to budget, save, and boost their financial literacy.

Now in its 10th year, the bank’s latest Consumer Digital Index offers the UK’s largest study of digital and financial capability, revealing that artificial intelligence is now a mainstream tool for money management, with 56% of adults relying on the tech in the past year.

One in three people report using AI once a week or more to help with money matters, more even than those using it for health advice, shopping recommendations, or travel planning, with ChatGPT having fast become the most popular platform for financial advice, used by six in 10.

More than a third of users (37%) say they engage with AI for investment research and recommendations, a quarter (26%) for debt management strategies, while almost four in 10 (39%) have turned to it for future financial planning, such as information on pensions.

According to Lloyds, this growing reliance on AI tools is bringing significant benefits, for example, users estimate they’ve saved an average of £399 a year thanks to AI-generated insights. 

However, despite its growing popularity, trust in AI still lags.

The vast majority (83%) of AI users say they worry about data privacy, while 80% are concerned about receiving inaccurate or outdated information, and nearly seven in 10 (69%) say the technology cannot generate personalised advice tailored to their individual circumstances.

Lloyds said that this trust gap highlights a critical challenge, with millions willing to experiment with AI tools, but most reluctant to rely on them without validation from more established, traditional sources and wary of the lack of regulatory oversight that financial matters demand.

With more than one in three adults expecting to increase their use of AI for money management next year, the bank said that combining cutting-edge tech with trusted expertise will be key to building confidence and unlocking its full potential.

“AI is rapidly transforming how people manage their money, with the potential for millions of consumers to feel more confident and in control of their personal finances,” said Jas Singh, CEO for consumer relationships at Lloyds Banking Group.

“But as AI becomes a bigger part of our financial lives, trust is the next frontier. People want to be sure the information they receive is accurate, secure and truly tailored to their needs. 

“That’s why banks have a vital role – not just in providing cutting-edge technology, but in combining it with trusted expertise and a deep understanding of our customers.

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Alongside rising AI adoption, Lloyds’ study shows digital banking in general is now booming. Nearly 87% of UK adults now say they’re confident managing money online, a jump of more than four million in the last five years, with Lloyds alone having seen the number of customers using its banking apps rise threefold to more than 21 million.

The survey found that people who use digital tools regularly are significantly more likely to feel engaged and confident in managing their finances, with two-thirds (66%) of internet users saying being online makes them feel more confident managing money.

Added to that, almost all (93%) of those regularly using digital tools say they feel better equipped to make informed decisions, compared to just 62% of those who lack digital confidence.