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Generative AI Tools Change The Financial Journey

Author

Ethan Garry
Research Analyst
LIMRA and LOMA
egarry@limra.com

February 2026

Generative artificial intelligence (GenAI) is rapidly reshaping how consumers explore financial products and services, and how they approach professional advice. Its ease of use, along with its ability to cover virtually any topic by providing information, personalized insights, and the most current research, is shifting expectations for how we access information. Emerging data show meaningful demographic patterns: adoption skews toward younger generations and men, trust varies by gender, and among those who have used GenAI for financial matters, the technology appears to strengthen both interest and preparedness for meeting with a financial professional. These trends signal both opportunities and imperatives for financial institutions seeking to meet evolving consumer needs.

GenAI Usage

According to findings from LIMRA’s U.S. Consumer Sentiment (October 2025), there are clear generational and gender differences in how consumers use GenAI for financial purposes. Younger generations are significantly more inclined to utilize it to explore financial products, services or professionals. For example, 44% of Gen Z respondents report using GenAI in these contexts, compared to only 9% of Baby Boomers, highlighting a strong generational divide. This trend suggests that comfort with technology and digital tools plays a major role in financial decision-making behaviors.

Figure 1. Used Generative AI to Explore Financial Products, Services or Professionals


Gender differences also are apparent. Men are nearly twice as likely as women to use GenAI for financial matters, with 33% of men engaging with it compared to just 17% of women. This disparity may reflect differences in confidence with technology, perceived value of AI-driven insights, or broader patterns in financial engagement. These findings underscore the importance of financial services providers tailoring their strategies based on demographic preferences and behaviors.

Barriers to Using GenAI

As GenAI becomes more prevalent in financial services, many consumers remain hesitant to rely on it for financial- and insurance-related topics such as gathering product details, finding professionals, or understanding coverage options. Recent data highlight common barriers — most notably trust, safety and accuracy concerns — with 59% of respondents who wouldn’t use GenAI for financial matters, citing these as their reasons. Insurance decisions involve sensitive personal and financial data, and consumers worry about how GenAI systems handle this information and their privacy. Among respondents, 66% say they worry about the information they put into GenAI tools being used without their knowledge or consent.

Trust in GenAI

These concerns are likely to diminish as usage increases and GenAI capabilities grow. For frequent users of GenAI — defined as those using it a minimum of 4 – 6 times a week — nearly half (49%) say they trust it completely/quite a bit, underscoring the connection between trust and comfort with the technology. Trust in GenAI also varies significantly by gender, with 24% of men expressing complete or high trust compared to just 15% of women. This divide further shows the correlation between GenAI usage frequency and trust; the more exposure consumers have to AI tools — and the more familiar they become with the benefits those tools can provide — the higher their level of trust.

What This Means

Among those likely to use AI when shopping for life insurance, 37% say GenAI would increase their interest in meeting with a financial professional. This suggests that GenAI can serve as a great tool to reach new clients or strengthen relationships with current clients. Because GenAI is easy to use and less intimidating than speaking with a professional, consumers can build baseline knowledge of financial products and services that can spark curiosity for deeper understanding or for exploring new options that GenAI may suggest.

Moreover, 65% of these individuals believe GenAI would help them feel more prepared for a meeting. This is a critical advantage because preparation often correlates with confidence and can help financial professionals connect with consumers who may have previously been uninterested due to a lack of understanding and confidence. From LIMRA’s recent study, Hispanic Consumers’ Expectations and Experiences, one respondent reflected on their experience working with a financial professional, “When I first met with a financial advisor, I was very overwhelmed because I didn't grasp much of what it all meant, and I felt very confused.” 

Financial professionals can leverage GenAI to provide personalized premeeting resources, such as tailored financial summaries, scenario analyses, or educational content. These tools empower clients to enter conversations with a clearer understanding of their financial situation and goals, making discussions more productive and less overwhelming.

Figure 2. Help me Feel More Prepared for the Conversation


By integrating AI-driven tools into their outreach strategies, advisors can position themselves as forward thinking and client centric, appealing to tech-savvy prospects who value innovation and breaking down barriers to connect with those who may be hesitant to engage with professionals due to their limited knowledge of financial topics.

Conclusion

GenAI is more than a technological advancement; it is transforming the way consumers interact with financial information and professionals. Although adoption and trust differ across age groups and genders, the evidence shows that GenAI can build confidence, spark curiosity, and improve preparation for financial discussions.

For financial institutions and advisors, this creates a significant opportunity to bridge knowledge gaps, strengthen trust, and deliver personalized experiences that meet modern expectations. Organizations that integrate AI-driven tools into their strategies will be better equipped to connect with tech-savvy consumers and foster stronger, more informed relationships in an increasingly digital financial environment.

 

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