AI is everywhere these days. To some it’s a great tool, to others it can seem confusing, or even intrusive. We think of AI, we think of robots and all the movies that show us everything that can go wrong with them.
AI in its current form is everywhere. It can be used to write articles, code and even generate some pretty realistic images and videos. There are a variety of types that do different things for different purposes. To some degree, AI uses algorithms and data to structure its intended purposes. Social media platforms also use these to generate the content and advertising you see on various platforms.
But in the world of finance, can it help us with our money goals or our money issues?
In the finance world, you are likely to come across AI if you use robo-advice services. Robo-advice – or robo-adviser – is an online platform or app that provides the same kinds of services that traditional financial advisers do. It uses a combination of algorithms and expert analysis to create financial plans for customers. They can even manage someone’s investments automatically. These are provided by a range of traditional financial institutions, as well as standalone investment companies.
One of the benefits for robo-advice is that the cost can be considerably lower than traditional face-to-face financial advice services. This means that advice becomes more accessible to everyday Australians who may have avoided seeking advice due to its cost. But there are also drawbacks and limitations. They can lack the flexibility that other services provide and are generally limited to the services they can offer.
Outside the realm of investments, there are a range of AI powered apps out there that could help you with your everyday money issues such as budgeting. AI chatbots can also be helpful in understanding a variety of financial topics. Chatbots allow you to have human-like conversations, and could assist in helping you gain understanding of financial topics, or even suggest tips for managing or saving money (it may not be a tool to use to create a financial plan, but it could be a good educational starting point).
Is AI powered advice the future of finance? This is a topic that will be debated for many years to come. Right now, a combination of robo-advice and human interaction may very well become the norm.
