Lack of financial confidence driving consumers to AI assistants – study

October 16, 2026 • 0 Comment

A significant number of UK banking consumers are turning to AI assistants out of a sense of embarrassment and a fear of being judged for a lack of financial literacy. This is the main finding from a study conducted by banking app Plum, according to Finextra.

More than a third (35%) of respondents said they do not ask more questions about their financial affairs due to the fear of “sounding stupid”.

In addition, over half (53%) of Brits have avoided asking a money question for fear of sounding financially inexperienced, and the same percentage have pretended to understand a financial term.

The fear of being judged is apparently a barrier to greater understanding. More than two fifths (42%) said they would feel more confident asking financial questions if they knew they would not be judged, with 38% citing anonymity as helpful. Stocks and shares were cited as the topic Brits feel least equipped to navigate (44%).

This sense of embarassment and lack of financial understanding has led more consumers to seek the help of AI rather than humans. According to the survey, 18% would feel most comfortable talking to an AI assistant, just below the 19% that would prefer to use a human financial adviser.

“It’s easy to see why people are using AI to manage their finances. Money can feel like a difficult topic, especially as there’s often a sense that you’re supposed to know all the answers. Being able to ask questions privately, without worrying about what someone else might think, removes some of those barriers. But knowing which sources to trust is paramount to keeping your money safe. Mainstream LLMs are not designed specifically to help you with your personal finances and lack the context, data security and financial tools that you can find on a specially designed service like Plum Plan. Technology can be a powerful tool to help build financial confidence, but only when the right tools are used thoughtfully.“– said Will Bryant, Director of Wealth Strategy, Plum.