Artificial Intelligence Use for Financial Advice and Financial Behaviors: The Role of Financial Knowledge

ABSTRACT

With the advent of Artificial Intelligence (AI)‐driven tools in financial services and planning, there is concern about the role of AI‐driven financial advice and openness to these in relation to individual financial behaviors, particularly regarding clients' interpretation of this advice and its applicability to their financial situations. Therefore, this study, using data from the 2024 National Financial Capability Study (NFCS), investigated the relationship between the willingness to use AI for financial advice and financial behaviors (short and long term). Furthermore, this study tested how financial knowledge (objective and self‐assessed) may moderate the aforementioned relationship. Findings showed that willingness to use AI relates to short‐ and long‐term financial behaviors differently, and that only self‐assessed financial knowledge significantly moderated these associations. These findings have implications for individuals and financial professionals working with clients and highlight the importance of perceived financial knowledge in how individuals translate AI‐based advice into financial behaviors. This study suggests that while AI tools in financial planning are beneficial, they cannot eliminate the role of human financial advisors.