Is AI Influencing Gen Z Spending Habits?

Yugo, a global student housing brand, has published research showing that artificial intelligence is influencing how students spend and manage money. The survey covered over 7,000 students in 9 countries and found that 12% of UK students say AI marketing led them to overspend, while 4% say it directly caused them to go into debt.

The findings also show a massive change in credit card use. In the UK, 69% of students now have a credit card compared with 28% in 2024. Yugo links a some of this rise to AI advertising, which can influence spending decisions. The company says these results make it evident that financial learning should take into account the digital tools influencing daily life.

Many students are interested in learning how to use AI in a way that benefits them. Budgeting apps, spending trackers and smart shopping tools are areas they would like to understand better. But only 8.5% of UK students question brand recommendations from AI, while 8.7% avoid brands that use AI marketing altogether.

 

Do Students Trust AI With Their Finances?

 

Yugo’s survey found that 40% of UK students would trust AI to manage investments… 10.6% believe it helps them shop more effectively while 61% say it makes them more efficient overall.

There is also difference in attitudes between international and UK students. More than half of international students surveyed, 53%, feel positive about AI’s effect, compared to only 29% of UK students. Yugo says this reflects cultural differences in how technology is adopted.

The organisation is using these findings as part of its ‘Live Your Best Life’ programme, which is designed to help students handle independent living. This covers topics such as budgeting, mental wellbeing, career preparation and sustainable living. Yugo says that with the right support, AI can be a tool for building financial skills rather than a cause of debt.
 

 
Emily Porter, Global Senior Brand Manager and Head of the Live Your Best Life programme at Yugo said, “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.”

 

How Is AI Changing Consumer Behaviour In General?

 

Research from the University of Virginia Darden School of Business shows that almost 60% of consumers have used AI to help them shop. The same surveys found that 46% trust AI more than a friend when deciding what to wear. Professor Luca Cian, who leads the research, calls this “augmented decision-making”, where AI handles much of the process before a purchase is made.

Cian explains that AI works well for people because it fits into existing habits. It reduces the stress of having too many options and increases confidence when making a choice. According to the research, 77% of consumers say AI helps them decide faster. This is changing how companies have to reach shoppers, as influence now happens earlier and more quickly.

The surveys also show that people see AI as more direct in its advice because it has no social reasons to soften opinions. Friends may hold back to avoid hurting feelings, but AI gives unfiltered suggestions. Even so, Cian says that trust fades if people think AI is working in the interest of the company rather than the customer. Transparency and control will be key in keeping trust.

With students trying to budget or shoppers choosing clothes, both studies show that AI is influencing in everyday decisions.