AI Can Pick The Payment Plan—But Consumers Still Want The Final Say
By CU Today Staff —
NEW YORK--A growing number of consumers are willing to let artificial intelligence help choose how they finance purchases, but they draw a firm line at giving up control, according to new research from PYMNTS Intelligence and Splitit.
The study found 61% of U.S. consumers would consider allowing an AI shopping assistant to recommend a Pay Later option for at least one purchase category, yet affordability, credit protection and consumer approval remain non-negotiable requirements.
The report suggests the strongest driver of AI adoption in payments is age rather than income. While 67% of Gen Z consumers and 58% of Millennials have used AI for at least one payment-related activity in the last three months, only 30% of Gen X consumers and 11% of Baby Boomers have done so. Researchers said the findings indicate younger consumers are developing “AI-first” financial habits that could persist as they move into more complex financial stages such as homeownership and retirement.
Those younger consumers are already using AI for practical financial tasks. Among Gen Z respondents, 17% use AI for budgeting, 17% for credit-score monitoring and 17% for comparing credit card installment plans. The report found that Pay Later-specific uses of AI are concentrated among younger generations, with Gen Z and Millennials far more likely than older consumers to use the technology to compare installment financing and BNPL options.
Notably, the research concluded that life stage—not income level or financial stress—is the primary factor shaping how consumers use AI for Pay Later decisions. Gen Z consumers led all demographic groups in comparing credit card installment plans through AI, outpacing even high-income households earning more than $150,000 annually. Researchers said the data suggest consumers’ age and stage of life matter more than earnings when it comes to adopting AI-powered financial tools.
Consumer interest in AI-driven financing extends beyond major purchases. Seventeen percent of respondents said they would allow AI to select a Pay Later option when buying electronics, the highest-ranked category. Furniture, apparel, travel and even everyday essentials each drew interest from 13% of consumers, while medical expenses, home repairs and auto-related costs also ranked prominently, suggesting AI-assisted financing is viewed as useful for both discretionary and necessity spending.
Still, consumers made clear they want AI to act as an adviser rather than an autonomous decision-maker. The two most frequently cited conditions for embracing AI-driven Pay Later recommendations were selecting the most affordable option and requiring consumer approval before any plan is finalized, each cited by 24% of respondents. Other key requirements included avoiding new credit applications, limiting purchase amounts and protecting existing credit relationships. The study found 37% of consumers would not be comfortable using AI-driven Pay Later under any conditions, while only 2% said they would allow AI to decide without guardrails.
Trust ultimately comes down to protecting consumers’ finances rather than maximizing rewards, the report found. Fifty-nine percent of respondents said it was very or extremely important that AI not negatively affect their credit score, while 56% prioritized securing the lowest total cost over time and 54% wanted the most affordable monthly payment. Researchers concluded consumers are looking for AI to help them save money and protect their credit—not to push new products or optimize rewards. As the report states, consumers want AI to serve as “a savings and protection tool, but only if it operates within boundaries they can set.”
Originally reported by CU Today.