Employees Face Financial Stress as More Turn to AI for Support

Employees are increasingly turning to ChatGPT and artificial intelligence (AI) technology to help manage their finances, even as many continue to rely on human advice.

Findings from Savvy Financial’s ‘Finances on Fire’ report show that employees are using AI, even if they’re doing so cautiously. Sixty-four percent of the 600 respondents said they would use an employer-provided AI financial guidance tool, but 81% would still prefer to have an advisor review the recommendations.

The findings open a broader conversation about the use of artificial intelligence in financial advice and how employers can use the technology to better engage workers while maintaining accountability and guidance.

“Workers are not disconnected from their finances; they are actively seeking answers in an increasingly complex financial environment,” said Brian Harrison, president of SAVVI Financial, in the statement. “Employers have the ability to provide reliable guidance that helps employees make informed decisions that build financial strength.”

Savvy Financial notes that more and more participants are looking for tools that can optimize the employee experience. Eighty-one percent of respondents say they want “a single view of how benefits, savings, debt and financial obligations interact.”

Others hope to better understand complex financial and retirement environments. More than 50% of respondents who made an early withdrawal from their retirement account say they did not fully understand the financial implications at the time, and 61% now expect to retire later than originally planned.

Overall, 51% of workers have become less confident in the past 12 months, and 64% say economic uncertainty has caused them to reconsider their retirement plans.

Savvy Financial encourages employers to reevaluate their communications strategy from awareness to personalized engagement where participants can fully understand the benefits of choices, debt management and investments.

“Employees need personalized, connected guidance that helps them make better decisions throughout their daily lives,” said Harrison. “With the right technology in place, organizations that invest in helping employees navigate financial challenges can significantly reduce workforce stress, increase employee satisfaction, and improve business results.”