It seems nearly everyone has been talking about artificial intelligence for years now, and one of the industries where it’s gained the most attention is personal finance. A.I. is becoming so popular that many online banking users today have become used to—and even dependent on—receiving personalized insights into their spending habits, all powered by A.I.
On the other side of personal finance, artificial intelligence also plays a crucial role in retail investing. An increasing number of traders depend on algorithmic trading based on A.I.s to stay profitable. In this post, I’ll discuss these and other ways how A.I. is impacting personal finance and, more importantly, how you can take full advantage of it.
What is Artificial Intelligence, and Why is it so Important?
Artificial intelligence refers to a branch of computer science where engineers develop software to “think” independently. The goal is for a computer to solve problems by itself with little to no input from a human. In other words, A.I.s are computer programs that learn by themselves.
Here are some of the benefits of implementing A.I. from both companies and customer’s perspectives:
- Companies can save revenue by making processes more efficient and automated.
- The A.I. becomes a revenue-generating asset that reduces the risk of losses and helps financial institutions make more money.
- Customers can get an edge on financial health with A.I.’s analysis and remarks on spending (automatic spending insights).
- Customers can enjoy a more accessible financial experience through chatbots.
- Both companies and individuals can manage risk and automate investing by using A.I.-based trading.
All these benefits from A.I. are already making it a valuable tool for both companies and customers, which explains why big tech companies have been acquiring A.I. startups left and right.
Of course, A.I. does not come without its risks. For example, one of the primary use cases of A.I. within finance today is to pick wise investments. Remember, though, that this technology is far from perfect, and its efficacy is not guaranteed. Therefore, it’s still a good idea to do your own research by studying the markets and studying investments on your own to spot potential investment opportunities the A.I. missed.
With that disclaimer out of the way, let’s dive in a little deeper into how A.I. is shaping the future of personal finance.
Chatbots & Personal Finance Managers
A.I. in mobile banking has already made great strides in terms of adoption. Most people have already seen or experienced it …….