DON’T: ASK FOR INVESTMENT ADVICE Most people can probably agree that investing can be intimidating. For this reason, it might be tempting to use AI tools for advice such as the best performing stocks to invest in, or the best cryptocurrency to buy. However, that probably isn’t the best idea, Nelson says. She says people should be leery about using AI for investment advice because it could end up giving blanket information. This could especially be the case if you’re not well-versed in forming prompts, which are the questions you ask the bots. The prompts you use can affect the quality of the answers you get. The more specific and descriptive your prompt, the better the quality your answers are likely to be. “They’re not going to take into account a person’s other assets, financial implications or implications related to their debt payouts or income. That is where talking to a real person can be the most helpful,” Nelson says. People may be wondering whether robo-advisors are the exception to the rule since they help with investing and use AI. The answer: It depends. Robo-advisors can be a good option for some, because they often cost much less than a human financial advisor and can put together an investment portfolio for you quickly based on your answers to questions. But robo-advisors don’t take your entire financial picture into account, and don’t offer personalized financial advice in the same way a human advisor would. DO: GET BUDGETING HELP Budgeting can be time-consuming, especially when you haven’t yet established a system that works for you. AI can help automate some of the tedious aspects of budgeting such as sorting through transactions, says Anthony DiMaggio, co-founder of Candlestick AI, an AI-powered investment platform in New York. “AI can be used to automate that process and sift through that information for you,” DiMaggio says. “So it’s reducing the effort outputted on your part, still getting that same result and helping you manage that budget or look at your finances or just get a better sense of things.”
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