WASHINGTON—Credit unions may be racing to talk about artificial intelligence, but a new report suggests many are still nowhere close to delivering the kinds of AI tools younger consumers and fast-growing small businesses already say they want from their financial institutions.
According to a new report from PYMNTS and Velera, 77% of Gen Z consumers and 75% of small and medium-sized businesses say they would use at least one AI-powered feature from their financial institution, yet only about one in four credit unions currently offer even basic AI chat support. The disconnect, researchers said, highlights what they describe as a widening “demand-execution gap” across the industry.
What consumers actually want from AI is also notably less futuristic than much of the hype surrounding generative AI. The strongest demand centers on practical money-management tasks such as tracking bills and subscriptions, budgeting, understanding credit and managing cash flow—not autonomous AI-driven purchases. The report found 22% of consumers want AI help tracking bills and subscriptions, while just 9% said they would trust AI to make purchases on their behalf.
That distinction may be especially important for credit unions trying to attract younger members without alienating existing ones. Current credit union members showed interest in advisory-style AI tools but were significantly more cautious about transactional features. Just 5% of current credit union members expressed interest in AI making purchases for them, compared with 17% of Gen Z consumers.
The report suggests AI increasingly could become less of a luxury feature and more of a competitive necessity, particularly as younger consumers grow more comfortable using digital-first financial tools. Former credit union members showed especially strong interest in AI-enabled banking services, with 74% saying they would use at least one AI feature from a financial institution. Researchers said that creates a potential re-engagement opportunity for credit unions that can deliver practical, easy-to-use AI capabilities before larger competitors fully dominate the space.
Small businesses may represent an even larger opportunity. The study found 83% of businesses generating more than $1 million in annual revenue expressed interest in AI tools from their financial institution, particularly for expense tracking, fee analysis and comparing financial products. Those firms also are among the most valuable and competitive commercial relationships for many credit unions.
Yet despite repeatedly identifying AI and personalized digital experiences as critical growth tools, many credit unions still are prioritizing other technology investments ahead of AI deployment. The report found AI agents ranked just ninth among 13 innovation priorities for credit unions, trailing data analytics, digital onboarding, data security and payment user experience initiatives.
Researchers said that hesitation could eventually create risks for institutions that wait too long to move beyond experimentation.
“The risk is that if credit unions wait for perfect conditions, they may discover that the market has already moved,” the report states.
The report, AI at the FI: Inside Credit Unions’ Demand-Execution Gap, was based on surveys of nearly 14,000 U.S. consumers, approximately 2,500 SMBs, 500 credit union executives and 100 fintech executives conducted between October and December 2025.