Yugo has released a new study that reveals how AI (AI) is reshaping Gen Z's financial behavior. One in 10 UK students are now in debt, where AI-driven marketing denies overexpenditures and even falls into debt.
A global survey, which has collected responses from over 7,000 students from nine countries, highlights the complex relationship between AI and money management. While many students embrace the convenience and efficiency offered by AI, Yugo's data also reveals early signs of financial burdens associated with its impact.
Research shows that in the UK alone, 69% of students own credit cards, compared to just 28% in 2024, 12% admitted that AI-influenced marketing led to overexpenditures, while 4% said AI tools played a direct role in pushing them into debt.
The findings point to the clear need for improved financial education, which reflects the digital tools that shape daily spending habits, especially for first-time students living independently. However, despite these challenges, students remain open to learning. Many people want to understand how it works and how to use it – when given the right support, from budgeting tools to smarter shopping apps.
Amid that increase, 8.5% of UK students are actively questioning the recommendations of brands that have been generated by AI, with 8.7% avoiding using AI entirely. In contrast, 40% of students say they trust AI to manage their investments, 10.6% think it helps them shop more competently, while 61% think it will be more efficient overall.
The Yugos study also revealed significant differences in AI perceptions between international and UK-based students. More than half of international respondents (53%) felt optimistic about the impact of AI, compared to 29% of UK-based students.
These findings inform us of some of Yugo's broader “Live Your Best Life” program. It is designed to help students navigate not only academic life, but independent adult challenges and opportunities, from budget and mental health to career preparation and sustainable living.
“Current students live in the midst of a huge cultural change that is reshaping not just how AI works, but how we spend, save and invest.
“This technology offers great benefits, but it also creates new pressure. As a sector, we have an obligation to help develop the economic trust and critical thinking needed to survive in an AI-driven world.
“Yugo responds by providing support well beyond the four barriers of accommodation. Through personal financial sessions, AI literacy education, access to coaching and welfare tools, we ensure that students are leveraging AI for their entire positive potential.”
Emily Porter, global senior brand manager at Yugo
This study follows Yugo's research, revealing students' views on AI. As AI continues to shape all aspects of student life, the sector has the opportunity to ensure that young people are not only educated but empowered.
