Yugo, the global student housing operator and brand, has released new research revealing how artificial intelligence is reshaping Gen Z’s financial behaviours – with one in 10 UK students now blaming AI-led marketing for overspending, and even falling into debt.
The global survey, which gathered responses from more than 7,000 students across nine countries, highlights a complicated relationship between AI and money management. While many students embrace the convenience and efficiency that AI offers, Yugo’s data also reveals early signs of financial strain linked to its influence.
UK students increasingly exposed to AI-led marketing
According to Yugo’s research, in the UK alone, 69% of students now own a credit card, compared to just 28% in 2024*. More concerningly, 12% admitted that AI-influenced marketing had led them to overspend, while 4% said AI tools had played a direct role in pushing them into debt.
The findings point to a clear need for an improved financial education that reflects the digital tools shaping everyday spending habits – especially for students living independently for the first time.
But, despite these challenges, students remain open to learning. Many are eager to understand how AI works and how to use it to their advantage – from budgeting tools to smarter shopping apps – when given the right support.
Despite risks, Gen Zs trusts AI with more than just their money
Amongst the rising use of AI, just 8.5% of UK students say they actively question AI-generated brand recommendations, with 8.7% avoiding brands using AI altogether. In contrast, 40% of students said they would trust AI to manage their investments, 10.6% believe it helps them shop more competently, and 61% believe AI makes them more efficient overall.
Yugo’s research also uncovered a stark difference in AI perception between international and UK-based students. More than half (53%) of international respondents said they feel optimistic about AI’s impact, compared to just 29% of UK-based students – highlighting cultural differences in digital adoption.
The opportunity for the student sector and Gen Z brands
These findings inform part of Yugo’s wider ‘Live Your Best Life’ programme, which is designed to help students navigate not just academic life, but the challenges and opportunities of independent adulthood – from budgeting and mental wellbeing to career preparation and sustainable living.
Emily Porter, global senior brand manager and head of the Live Your Best Life programme at Yugo, comments: “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.”
As AI continues to shape every aspect of student life, the sector has an opportunity to ensure young people are not just educated, but empowered – offering meaningful support to help students harness AI positively, and prepare them not just for graduation, but for life.
The impact of AI on Gen Z finances – key UK findings from Yugo’s research:
- 69% of UK students own a credit card
- 12% say AI-influenced marketing has led them to overspend
- 4% say AI tools pushed them directly into debt
- 8.5% question AI brand recommendations
- 8.7% avoid brands that use AI in their marketing
- 40% trust AI to manage their investments
- 10.6% say AI helps them shop more efficiently
- 61% believe AI makes them more efficient overall
- 53% of international students feel optimistic about AI – compared to just 29% of UK-born students
