Understanding Older Adults’ Perceptions of AI Use in Financial Decisions

Abstract: Older adults represent a disproportionately large group of financial fraud victims. Financial fraud targeting elders has escalated dramatically in recent years, with losses from government impersonation schemes alone increasing from $65 million in 2021 to $179 million in 2023, and overall losses exceeding $3 billion. Artificial Intelligence (AI) has the potential to significantly enhance personal finance decision-making, including detecting and preventing scams. However, for these tools to be effective, older adults must be willing to adopt and trust them. This study investigated older adults’ perceptions of AI use for personal finance decisions, focusing on their trust, comfort, and interest in AI-powered applications. We also examined how prior technology and AI use and experiences with financial scams influence older adults’ attitudes toward AI and their concerns about such technologies.Thirty-nine (39) older adults completed an online survey (M = 63.0 yrs., SD = 10.6 yrs.). The sample was predominantly female (37 participants), and well-educated—59% reported holding a bachelor’s or graduate degree. The survey included both closed- and open-ended questions related to AI use in finance, their comfort and trust in such tools, and their concerns. Most participants (~80%) reported that they have used AI-powered tools such as voice assistants or customer service chatbots. Over half of the respondents (56%) indicated to have been or know a close relative who was a victim of a financial scam, and nearly 90% of respondents said that they are concerned about being a victim of a financial scam. Most participants (64%) expressed trust in AI applications for detecting financial scams, while nearly half (49%) found AI to be useful for managing personal finance tasks. When asked whether AI could help protect people from financial scams, the majority, 56% responded with “maybe,” reflecting a sense of openness and curiosity about its potential. Meanwhile, 26% expressed confidence with a definitive “yes,” and 18% believed that AI could not offer protection from scams. An ordinal logistic regression analysis revealed that older adults with greater concerns about financial scams are more likely to show both a higher interest (p = .007) and greater comfort (p = .031) in using AI for personal financial decisions. Furthermore, individuals who consider AI-based technology important in their daily lives were more likely to report feeling more comfortable asking AI to assist them with their questions about personal finance decisions (p = .032). A thematic analysis was conducted on the comments from the open-ended questions. The findings suggested that the respondents had an overall positive view of AI. Participants emphasized its value for convenience and problem-solving. While some concerns emerged—such as data privacy or lack of knowledge about the technology—they were often balanced by a willingness to engage with AI tools. Overall, respondents expressed a willingness to use AI for financial decision-making, especially when its benefits are clearly explained and their concerns about data security are properly addressed. It important to note that the majority of survey respondents were well-educated, so the findings should be interpreted and generalized with caution.

Keywords: Older adults, Artificial Intelligence, Personal Finance, Fraud, Survey

DOI: 10.54941/ahfe1006290

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