The same algorithm Gen Z fears is managing its portfolio

The iCIMS Workforce Report reveals that 51% of Gen Z individuals fear artificial intelligence as the greatest threat to their employment prospects. Simultaneously, 87% of Gen Z workers employ AI in their professional lives, while 24% report that incorporating AI into daily tasks has resulted in burnout. Despite these concerns, AI is increasingly gaining trust among Gen Z when it comes to managing their finances.

According to Betterment’s 2026 Retail Investor Survey, 48% of Gen Z investors admit that AI has already impacted a financial choice they made, and 41% express comfort in utilizing AI for long-term financial planning, compared to 5% among Baby Boomers. When human advisors are factored in, AI’s influence over investment decisions becomes even more pronounced.

Betterment Advisor Solutions’ 2026 survey, conducted among 1,001 individuals with a standing advisor relationship, found that 65% of Gen Z clients have allowed AI to sway their decisions, a far greater figure than the 24% among retail investors without an advisor. Despite these numbers, many Gen Z investors still rely on AI algorithms to co-sign their investment portfolios.

Devon Klumb, a Certified Financial Planner at Betterment, stated to Fortune, "Investors want more ways to understand and engage with their finances, but they also need help turning all that information into decisions." Rather than hypocrisy, this behavior can be seen as Gen Z seeking trust in AI tools due to a lack of alternative sources of information and a growing reliance on AI-generated, confident-sounding recommendations.

This phenomenon, known as the AI "trust paradox," is not unique to Gen Z but is a broader trend driven by factors such as FOMO, optimism about AI improvements, and the belief that efficiency gains outweigh the risks.