Gen Z and Millennials Turn to AI and Gambling to Manage Debt, Study Finds

Gen Z and millennials are increasingly turning to online gambling and artificial intelligence (AI) as strategies to manage and escape significant debt, according to a new survey by National Debt Relief and Wakefield Research. The study indicates a shift in how younger adults seek financial guidance and attempt to resolve financial struggles.

A substantial 62% of millennials and 45% of Gen Z who regularly gamble reported using betting to try to reduce their debt. This is notably higher than older generations, with only 39% of Gen X and 19% of boomers reporting similar behavior. Prediction markets, fantasy sports, day trading, and traditional casino gambling are being utilized as financial survival tactics by cash-strapped young adults.

AI has also emerged as a popular source of financial advice for these demographics. The survey found that 69% of millennials and 64% of Gen Z have used AI for money advice during financial difficulties, compared to 45% of Gen X and 23% of boomers. Key factors driving AI adoption include its perceived "approachability" and the availability of "judgment-free advice."

Younger respondents expressed greater comfort discussing financial concerns with AI than with human connections. Specifically, 65% of millennials and 53% of Gen Z felt more at ease confiding in computers about their financial woes compared to family and friends.

"The data shows younger Americans are willing to seek help with their finances, but where they turn for that help is changing," said Cathleen Bell, vice president of customer research & insights at National Debt Relief. "For those who may be a fit for debt settlement, that means developing a plan that works with their financial situation and budget."

More than a third of millennials (38%) and over a quarter of Gen Zers (27%) burdened by unsecured debt—including credit cards, medical bills, personal loans, and Buy Now, Pay Later schemes—owe $7,500 or more. The survey also highlighted the sensitivity surrounding debt amounts, with 60% of both Gen Z and millennials stating they would rather publicly disclose their weight than the amount of debt they carry.

"Asking for help isn’t a sign of financial failure; it can be the first step toward regaining control and moving forward with confidence," Bell added.