As the number of financially unhealthy American consumers reaches 69%, consumers have turned to AI as they have begun to change the way they approach not just ancillary spending, but also short-term necessities and long-term investments. This is among the findings from a recent JD Power report.
Overall, 45% of consumers say they have reconsidered home ownership in the past 12 months. What’s more, in an effort to keep up with rising price demands, many consumers have dipped deep into their savings. Even after taking these measures, consumers are still struggling to pay for basic needs. In fact, 27% say they have an open balance on their utility bills.
With so many consumers trying to solve this affordability puzzle, it should come as no surprise that many are turning to artificial intelligence as a potential solution. But how reliable is the advice they’re getting?
Financial health declines slightly
In March, the total share of financially unhealthy consumers, defined as vulnerable, overextended or stressed, increased to 69%. That reflects a one percentage-point increase from February.
Affordability changes long-term goals
With consumer financial health stuck in a malaise, 45% of consumers say they have rethought homeownership in the past 12 months. That includes postponing buying a home until prices decline (12%), postponing buying until interest rates come down (12%), considering renting long-term instead of buying (12%), no longer pursuing home ownership (10%), and adjusting their target price range (9%). Consumers who are financially overextended and those under 40 were the most likely to take these actions.
Consumers also say that they are turning to their savings to keep up with the higher cost of goods. Overall, 21% say they are saving less in the past 12 months than they have previously, and another 26% have used some or all their savings/emergency funds to address rising expenses.
Utilities headline short-term strife
The struggles don’t end with long-term investments and savings. Overall, 26% of consumers say they do not feel equipped to handle their current utility bills. That reflects a four percentage-point increase from December 2025. Vulnerable consumers expressed the biggest drop in confidence. What’s more, 27% say they are carrying an unpaid balance on their utility bill, up from 23% in December.
When asked about the cost of their utilities compared to other products, 26% of consumers say the price of their utilities is increasing faster than the prices of other products and services, up from 19% in December. Financially healthy consumers and those over 40 are most likely to express this opinion.
An AI solution?
AI has quickly become one of America’s favorite shortcuts. For anything from a cover letter to a restaurant recommendation, Americans are quickly becoming comfortable asking AI to fill in the blanks. And according to JD Power data, financial advice is no different. Overall, 53% of consumers have asked AI for financial advice at least once in the past three months. Healthy consumers and those under 40 were most likely to consult AI.
When asked what type of advice they’re consulting AI for, 41% of consumers say they asked for saving strategies, 37% say they asked for help with their credit score or credit cards, and 36% say they asked for general financial education.
Fostering intelligent relationships
When there is an information vacuum, conjecture is often what fills it. But in a time of AI ubiquity, that vacuum is starting to be filled by whatever AI ends up generating. As their savings get whittled away and their bills pile up, consumers are desperate for answers.
Unfortunately, there’s no way to know that the advice they’re getting from random open-source AI can actually be relied upon.
This is where banks need to step in. It is clear that many consumers are struggling to meet their day-to-day cost-of-living expenses, and they are actively seeking help. But just blindly relying on consumer AI chatbots without any kind of personalization or customization can create serious vulnerabilities.
Banks have intimate knowledge of their customers’ pain points, and the ability to offer tailored solutions in the form of budgeting plans, financial advice and personalized spending analyses. By using this technology in a tailored way to help consumers, banks can harness the power of AI and protect their customers from shooting in the dark with their financial futures.