AI financial advice sparks demand for human advisors among Gen Z

Most Americans who consult AI for financial guidance stop short of acting on it, and for the youngest generation, the technology is actually driving them toward professional advisors, not away from them.

A survey of 2,278 adults conducted July 21–23, 2026 by New York Life Insurance Company found that while 82% of those who sought AI-generated financial guidance rated the quality as at least "good," only 23% went on to act on that advice without first seeking additional validation.

The findings, part of New York Life's recurring Wealth Watch research series, add nuance to the debate over whether AI tools are a threat or a complement to the advisor-client relationship.

"Our research shows Americans are using AI to build their financial knowledge, ask better questions and make more informed financial decisions," said Sean Madgett, vice president and head of Planning & Practice Solutions at New York Life. "We also found that more than half of adults (62%) believe AI tools don't understand their personal financial situation very well. Taken together, we're seeing AI as a starting point, but not a replacement for tailored human guidance."

The validation gap

Among those who received AI financial guidance but chose not to act on it immediately, the follow-up behaviors were telling. More than half (54%) ran their own internet search to verify what they'd read. Another 31% consulted a friend or family member, 29% checked a second AI tool, and a similar share turned to a financial professional for confirmation. The New York Life survey permitted multiple selections.

The pattern is consistent with findings from a Finra Investor Education Foundation study covered by InvestmentNews, which found that few Americans rely solely on AI for financial decisions even as awareness of these tools grows rapidly.

Budgeting and saving topped the list of financial topics that AI users ask about, at 42%, followed by investing basics at 39% and general financial education at 31%. Retirement planning attracted queries from only 12% of AI users, and developing a holistic financial strategy from just 10% - the most complex and consequential decisions where personalized guidance matters most.

Gen Z signals a reversal in expectations

Perhaps the most striking finding for advisors is how the youngest generation is processing the AI moment. Among Gen Z adults, 40% said the availability of AI tools has made them feel a greater need for a human financial professional, compared with 27% of Americans overall.

Three in four Americans (75%) said it is important for a human to be involved in their most important financial decisions, with more than half calling that involvement "very important." Among those who prefer human guidance, the top reasons include trusting humans to understand their full situation (57%), wanting someone who genuinely knows them (37%), emotional reassurance (27%), and accountability (18%).

"Interestingly, the generation that has grown up with technology is also the one most likely to recognize what technology can't do," Madgett said. "Gen Z uses AI for financial questions more than any other generation, and they're also the most likely to say that AI makes them want human guidance more. Access to information is not the same as having someone in your corner."

These findings align with separate research published in June 2026, in which InvestmentNews reported that clients are broadly comfortable with advisor AI use, provided they know a human remains in the loop for substantive decisions.

AI in the advisor's hands builds trust

The survey also explored how clients view AI when it is their advisor, rather than the client who is using it. Among Americans who currently work with a financial professional, 47% said knowing their advisor uses AI increases their overall trust. That figure climbs to 65% among Millennials and 61% among Gen Z, though only 12% of Baby Boomers reported the same effect.

Three in four Americans with a financial professional (76%) said they would be comfortable with their advisor using AI to help manage or inform their financial strategy. Comfort is highest when AI handles administrative support, scheduling and reminders (71%), meeting preparation (68%), and document organization (66%). Exactly half of respondents said they are comfortable with AI making automatic investment decisions without human review.

The distinction matters for advisors thinking about how to present their technology stack to clients. As InvestmentNews reported in February 2026, advisors already using generative AI are primarily deploying it for internal productivity tasks - meeting summaries, idea generation, and client communications - while remaining cautious about positioning the technology directly to clients.

Comprehensive planning drives stronger outcomes

The New York Life survey reinforces a longstanding argument for holistic financial planning. Americans who work with a financial professional, have a written financial strategy in place, and own both protection and investment products report significantly stronger confidence than those without this combination.

Among this group, 93% said they are confident in their ability to make sound financial decisions, compared with 78% of Americans overall. The same percentage (93%) said they feel financially prepared for unexpected life events, against 58% of the broader population. Nearly twice as many in this group report having clear financial goals and actively working toward them (66% versus 35% overall).

"Americans don't want to choose between technology and a human relationship," Madgett said. "They want both, and when their financial professional uses AI well, it can deepen the trust they already have."

For advisors navigating the technology question with clients, the data offers a straightforward message: AI is shaping how people arrive at the conversation, but it is not changing what they want from it.