One third of Canadians are utilizing artificial intelligence (AI) for managing their finances and investments, with usage rates even higher among Gen Z, according to banking group BMO.

The BMO Real Financial Progress Index found that 52% of Canadians believe AI can help people make more informed financial decisions and 51% think it makes financial planning more accessible for everyone.

The report also explored other ways consumers are using AI, revealing that 45% of participants use AI to learn about personal finance topics and 43% use it to create or update household budgets.

Meanwhile, 40% of consumers are leveraging AI to build savings, and another 40% use it to create and/or update their financial plans.

Even though AI is helping Canadians manage some aspects of finances, 68% reported believing that AI cannot understand how emotions influence financial planning.

Gayle Ramsay, head of everyday banking segment and customer growth at BMO, said: "By making it easier to help manage finances, AI is proving a powerful tool to build financial literacy and make informed financial decisions.”

The report also revealed the AI usage gap between generations, with Gen Z emerging as the top user.

As Gen Z begins navigating life changes, 55% are using AI to plan for upcoming financial milestones — more than any other generation.

According to the report, the increased adoption of AI-powered tools aligns with Gen Z’s rising financial worries, with 91% of this generation identifying their overall financial situation as their main concern.

This was closely followed by fear of unknown expenses (90%), housing costs (86%) and keeping up with monthly bills (82%).

Gen Z also have more trust in AI as 61% believe it can help people make more informed financial decisions and 53% are confident AI tools can help them make real financial progress.