Gen Z Interested in AI-Enabled Banking Experiences Despite Privacy Concerns

Despite differences across gender, generations and income levels, artificial intelligence-powered experiences are becoming popular with consumers, and an increasing number of individuals now use AI technologies in their everyday routines.

“AI-Enabled Payments Enhance Customer Options,” a PYMNTS Intelligence and ACI Worldwide collaboration, drew on insights from a survey of more than 5,700 U.S. consumers to explore evolving consumer preferences and attitudes toward AI-driven payments, as well as their interactions with credit use.

Findings from the study showed that 1 in 3 consumers said AI technologies are already highly integrated into their routine personal activities. For instance, 84% of consumers search online using the technology, 52% use navigation apps or devices, and 52% receive product recommendations online.

The report indicated a clear trend in AI familiarity across generations, revealing that younger age groups are more acquainted with the technology compared to their older counterparts. For instance, Generation X consumers exhibited relatively lower familiarity, with only 37% expressing high familiarity or extreme understanding of the term “AI.”

The report also found that interest in AI-enabled shopping and banking services is growing among consumers, with approximately 4 in 10 expressing interest. This interest is driven by consumers’ increasing familiarity with AI and its integration into their daily lives.

Younger consumers, particularly Generation Z, are leading this trend, with approximately 60% of them interested in AI-enabled shopping, while 53% expressed interest in AI-enabled banking services. Millennials and bridge millennials also showed interest, with 54% and 51%, respectively, expressing interest in AI-enabled shopping and banking.

On the other hand, Gen X, baby boomers and seniors exhibited lower levels of interest in AI-enabled services, which dovetails with separate PYMNTS Intelligence research that showed consumers, particularly older generations, remain hesitant about AI’s involvement in certain aspects of their lives, including healthcare, banking and work-related activities.

When it comes to finances, for example, the “Consumer Interest in Artificial Intelligence” study found that 39% of consumers expressed at least some interest in AI involvement in their banking activities, and this percentage dropped to 28% among baby boomers and seniors.

Privacy, trust and confidentiality concerns were identified as contributing factors to consumers’ reservations about AI in banking, with baby boomers and seniors exhibiting more hesitation than other generations, possibly due to a lack of familiarity or trust in the technology.

Although consumers are getting more interested in AI experiences for convenience and personalization, there is still a gap between what they know about AI and how much the technology affects personal matters like healthcare and banking.

For businesses in strict fields like healthcare and finance, it’s crucial to focus on safeguarding data privacy and showing how AI can help in positive ways. Moreover, by customizing services to effectively align with consumers’ varied preferences and needs regarding AI applications, businesses can not only bolster their offerings but also enhance trust, satisfaction and overall consumer experiences.