Artificial Intelligence is slowly changing the world as one knows it. From simply unlocking your phone to fully-functioning robots, AI has changed it all and it continues to change in recent years. This technology has paved its way into the fields of science, healthcare, transportation, manufacturing, and even finance.
Now, you may be surprised to hear that AI has also entered the realm of finance, it is changing how people manage and control their finances. AI is making managing finances easy by automating and simplifying the tiresome components, enhancing results, and monitoring the difficulties.
AI has quickly become essential for every financial institution whether it is providing simple financial advice, language processing powered chatbots available 24/7, or tailoring insights for wealth management reasons. Get to know about how AI has changed finances but more is needed to become the undefeated king of personal finances.
There are numerous tools that can help people is to budget and manage. AI looks into the person’s spending habits and patterns and then it suggests a recommendation based on the observation it has done. This way people can save and follow their financial goals. AI can also be used for investment purposes as it has been programmed to analyze the market trends and provide an outlook to the person alongside advice that is tailored to the needs and the requirements.
AI has also become advanced to the point that it can detect fraud and alert the banks way before anything gets out of hand. People can also find help from AI just like they would with a financial advisor, AI can also help people improve their credit score by simply observing the trends and then sharing suggestions.
A Long Way To Go
While there is no denying that AI has made its way into managing finance and has proved to be a useful tool but there are some limitations that come with it. Many people acknowledge the benefits that AI provides such as the efficient, cost-effective way to manage personal finances but at the same time, it lacks the ‘human factor’ which, for many people, is important to incorporate into their daily lives. Now the question is could AI overcomes this human factor and provide a unique experience to the people or somethings are better done by humans?
Given the importance of finances, it might be difficult for people to take advice from a bot that doesn’t understand the technicalities and lacks human emotion. There is also a trust deficit between the two as well which may also cause hesitation towards adopting AI as a personal finance manager. But at the same time, many people are taking the opportunity, for them, it all boils down to what they think works for them and what doesn’t.
There are many possibilities when it comes to what AI is capable of and what the future looks like with AI but one thing is certain no matter how much the world advances, some things are always going to stay the old-school way.