Canadians turn to AI for anonymous, judgment-free financial advice

About one in seven Canadians (15%) turned to AI tools for financial guidance in the past year, as some fear being judged by financial professionals, according to a survey commissioned by Alberta-based credit counselling agency Money Mentors.

A wider segment of Canadians — one-third or 32% — sought financial advice online, the survey found. Among different age groups, those aged 18 to 34 were found to be most likely to seek advice online (47%) and those aged 55 or older were least likely (17%).

Based on the survey results, Canadians are asking questions on the basics, such as budgeting and registered accounts, Stacy Yanchuk Oleksy, CEO of Money Mentors, said in an interview. Some are also researching buy-now, pay-later loans.

Among those who turned to online information, 69% said the information was faster to access, 27% wanted to be anonymous and 23% looked for advice without feeling judged.

People conflate their self-worth with their net worth, Olesky said. They get embarrassed when they’re struggling financially, so some turn to AI for help.

“AI provides information in a friendly, generous tone,” she explained. “When professionals are working with individuals, it’s about developing that trust because money’s never just about money — it’s about how you feel about it, your perception of it, your relationship to it.”

But that friendly tone can also be a risk. For example, if someone asks an AI chatbot whether they should start a business, many will respond positively and encourage the person to do so while underplaying the risks, Olesky said.

As such, she said financial professionals need to educate their clients about AI’s reliability when it comes to financial advice. AI can hallucinate, so remind clients to check with official sources such as the Financial Consumer Agency of Canada or the Canada Revenue Agency.

Technology has also changed the way clients are having conversations. About half (47%) said they used AI to educate themselves before speaking with a professional.

There’s often a power dynamic when someone sees a financial professional, since they tend to be more knowledgeable on money issues, Olesky said. AI can help consumers feel more comfortable by equipping them with knowledge so they can ask better questions and get more out of those meetings.

The Angus Reid survey of 1,501 Canadian adults was conducted between May 19 and 21 in English and French.