Research Reveals the Role of AI in Gen Z’s Financial Behaviours

Artificial Intelligence (AI) is rapidly influencing the way Generation Z manages money, and recent research from Yugo sheds light on this emerging trend. A global survey involving over 7,000 students across nine countries has uncovered how AI-led marketing is shaping financial behaviours, with a notable rise in overspending among UK students.

Yugo, a leading global student housing operator, has revealed in its latest report that while AI offers convenience and efficiency, it is also creating financial pressures for students, particularly those living independently for the first time. In the UK, 12% of students have admitted that AI-influenced marketing has led them to overspend, with 4% acknowledging that AI tools have directly contributed to them falling into debt.

These findings underscore a critical need for improved financial education that incorporates the digital tools influencing student spending habits. As more students are exposed to AI-driven advertisements and recommendations, understanding how to manage money in this new environment is becoming essential.

The Rise of AI-Led Marketing Among UK Students

Yugo’s data highlights a significant shift in the financial behaviour of students in the UK. For instance, 69% of students now own a credit card, a sharp increase from just 28% in 2024. The increased use of credit cards, coupled with AI-led marketing, has triggered concerns about young people's ability to manage their finances effectively. While AI tools offer opportunities for smarter shopping and budgeting, they can also lead students into impulsive spending.

Despite these risks, there is also an appetite among students for learning how to use AI in a beneficial way. Many students are eager to harness the power of AI for budgeting, investment management, and other financial tools, as long as the right support and education are provided.

Trust in AI: A Mixed Perspective

The study also reveals varying levels of trust in AI among UK students. While 40% of students would trust AI to manage their investments, only 8.5% actively question AI-generated brand recommendations. This shows that although AI is increasingly integrated into their daily lives, many students are not fully aware of its influence on their purchasing decisions. Furthermore, 61% of UK students agree that AI makes them more efficient, yet only a small percentage question its recommendations.

Interestingly, there is a noticeable difference in AI perceptions between UK students and their international peers. More than half (53%) of international students feel optimistic about the role AI will play in their lives, compared to just 29% of UK students. This stark contrast suggests that cultural differences play a key role in how students embrace and trust AI technology.

The Need for Financial Education in the AI Era

The findings from Yugo’s survey indicate that while AI presents significant opportunities for students, it also creates new challenges. As AI continues to shape various aspects of student life, from budgeting to shopping, students require guidance on how to navigate these digital tools responsibly.

Emily Porter, Global Senior Brand Manager and Head of the ‘Live Your Best Life’ programme at Yugo, explains:

“Current students are living in the midst of a huge cultural change, where AI is reshaping not just how we work, but how we spend, save, and invest.

“While the technology brings huge benefits, it also creates new pressures. As a sector, we have a duty to help students develop the financial confidence and critical thinking they need to thrive - and not just survive - in an AI-driven world.

“At Yugo, we’re responding by offering support that goes far beyond the four walls of accommodation - whether that’s through personal finance sessions, AI literacy education, or access to coaching and wellbeing tools – ensuring our students utilise AI to its full positive potential.”

Yugo’s ‘Live Your Best Life’ programme aims to equip students with the necessary tools to manage their finances effectively, integrating AI literacy into financial education. The initiative includes personal finance sessions, coaching, and access to wellbeing tools, ensuring that students can use AI to its full potential without falling into financial distress.

Key Insights: AI’s Impact on UK Student Finances

Yugo’s research provides several important insights into how AI is influencing UK students’ financial habits:

69% of UK students now own a credit card
12% of students attribute overspending to AI-influenced marketing
4% of students have fallen into debt due to AI tools
40% of students trust AI to manage their investments
61% believe AI makes them more efficient overall
8.5% of students actively question AI brand recommendations
53% of international students feel optimistic about AI, compared to just 29% of UK students

Empowering Students to Harness AI

Yugo’s research highlights the importance of providing students with the tools and education needed to use AI positively. By offering resources like AI literacy education and personal finance sessions, Yugo is taking steps to ensure that students can make the most of AI without succumbing to the risks associated with its influence.

As AI continues to shape the future of work, finance, and personal habits, it is clear that a proactive approach is needed to help students navigate this complex digital landscape. Through educational initiatives and financial support, the student sector can empower young people to thrive in an AI-driven world.

About Yugo

Yugo is the world’s first global student housing brand, committed to creating vibrant and supportive spaces where students can live, grow, and thrive. With over 220 student living spaces in 14 countries, Yugo provides housing for nearly 100,000 students in top university cities worldwide. The brand’s ‘Live Your Best Life’ programme offers support in career skills, wellbeing, and sustainability, all backed by insights from thousands of Gen Z students.

Yugo is also the official student housing partner of the Visa Cash App Racing Bulls F1™ Team, offering students unique experiences and global opportunities.