The Do’s and Don’ts of Using AI to Manage Your Finances
ELIZABETH AYOOLA
Juggling budgeting, debt management and investing for retirement can be overwhelming, but artificial intelligence may be able to help with the balancing act. There are many AI-driven tools you can use to manage personal finances, such as chatbots, robo-advisors, apps, financial assistants and search engines. As the list of AI-driven tools continues to grow, you may be considering using one for your financial decisions. Perhaps you already are.
It’s important to understand the risks and opportunities of using AI to manage your money.
DO: SEEK BASIC FINANCIAL EDUCATION AI can be useful if you want to get a better understanding of financial topics, says Molly Nelson, a certified financial planner from Missoula, Montana, who runs The Money Coven, a financial community for women. “I think when you’re looking for basic education, it’s a great tool to use to clarify financial concepts or financial definitions for yourself,” Nelson says.
Basic education may include understanding how budgeting, estate planning or insurance work.
Nelson adds that ChatGPT — an AI tool that provides responses to prompts you input — can be used for financial education. For instance, you could ask multiple questions about a financial topic you don’t understand and ask it to adapt those answers to your learning style or provide real-life examples. One of the benefits of chatbots is you can engage in two-way conversations. In other words, the chatbot can be a sounding board or thought partner you use alongside other resources, such as a finance professional, books or vetted content produced by financial platforms.
Even if you’re using AI tools just for general education, verify the information you’re getting.
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