What do Kiwis think of AI?

AI is already part of everyday life.

For many, it is no longer a future technology. It'ss already here, quietly showing up in the tools, apps and services we use every day.

But when it comes to financial services, Kiwis are drawing a clear line.

They are open to AI helping them. They are much less comfortable with AI making big decisions about their money.

That is the central finding of FSC’s new report, Artificial Intelligence and the Future of Financial Services in New Zealand.

The report brings together global evidence, national context and FSC’s own sector research to understand how trust in AI is forming - particularly in a sector where trust matters more than almost anything else.

FSC Chief Executive Kirk Hope says the findings are a clear signal for the sector.

“AI is no longer some distant technology or a handy tool for writing emails. It's here and reshaping how businesses operate, and financial services is no different,” Hope says.

“With nearly two thirds of people comfortable using it, Kiwis can clearly see the value of AI when it helps them get answers, spot scams or cut through paperwork. But they’re much less comfortable when AI moves from helping to deciding."

Check out our first ever report into AI and what the world and Kiwis think of its uses.

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The distinction between helping and deciding is where the story gets interesting.

The research shows consumers are most comfortable when AI is used to support, protect or simplify.

Those are the practical, useful jobs. Where AI can save time, reduce friction and can help people navigate products or processes that are often complex.

But comfort drops sharply when AI starts making decisions.

Only 35% of Kiwis are comfortable with AI making automated financial decisions, while 44% are uncomfortable.

This is because financial decisions aren't abstract. They can affect whether someone gets a claim paid, receives a recommendation, understands an investment option, accesses insurance or feels confident about their financial future.

“The closer AI gets to a consequential financial outcome, the more consumers expect transparency, fairness and human oversight.”

So, what do Kiwis think of AI?

The answer is not simple enthusiasm or outright rejection. It's more conditional than that.

Kiwis can see the upside. They are using AI, recognising its convenience and becoming more familiar with what it can do. But in financial services, familiarity does not automatically equal trust.

The report found 42% of consumers are comfortable with financial services organisations using AI overall, compared with 36% who are uncomfortable. Comfort is similar across life insurance, health insurance, KiwiSaver and investment management.

In other words, the trust question is bigger than any one product.

It's about how AI is used, how clearly it is explained, what data sits behind it, and whether a human remains accountable when the stakes are high.

The research also shows strong concern about risk. 70% of Kiwis are concerned about privacy and AI’s use of personal data, and 62% are concerned AI could reinforce bias or discrimination.

Those concerns are not side issues. They go directly to whether people will trust AI in financial services.

“The financial services sector needs to be proactive. That means clear governance, plain-English communication and practical human checkpoints for high-impact decisions," says Hope.

“AI can improve service, reduce friction, strengthen fraud detection and help people better understand their options. But if customers feel AI is opaque, unfair or being used to remove human accountability, trust will go backwards quickly.”

There's another important finding in our report: confidence.

We found 60% of Kiwis have high financial confidence are comfortable with AI. Among those with low financial confidence, comfort drops to between 18% and 22%.

That should give our sector pause.

AI has the potential to make financial services easier to use and easier to understand. But if it only works well for people who are already confident, digitally engaged and financially literate, it could widen the gap rather than close it.

“If AI is going to improve access and outcomes, the sector must support people who are less confident, less digitally familiar or more vulnerable – not leave them further behind.”

That's the challenge now.

Our sector doesn't need to choose between innovation and trust. We need to build both at the same time.

AI can help customers get faster answers. It can help detect scams. It can cut through paperwork. And make complex information easier to understand.

But for the big calls (the ones that affect people’s money, cover, savings and future choices), Kiwis still want transparency, fairness and human accountability.

That's the trust test.