A recent study “paints a grim picture of the financial literacy landscape in the U.S. … [Many] individuals in the U.S. — both young and old — lack the basic knowledge and skills required to engage in sound financial decision-making.” Worse, financial literacy appears to be declining over time. Given the attention generative AI has received as of late, it’s natural to ask whether this technology can solve the problem. Not yet. Its impressive but imperfect performance on financial literacy assessments emphasizes the importance of financial education that enables people to use AI for financial decision-making, and highlights the urgency of incorporating AI into financial education.
