There are multiple tools that use AI to help with budgeting needs. For instance, Cleo is an AI budgeting app that can provide a budget plan, send payment reminders and track your spending. Some general budget apps have started incorporating AI, too — through chatbots, for instance — to make their tools more efficient. Apps aside, AI chatbots can be helpful when it comes to elements of budgeting, such as analyzing spending habits, identifying areas for improvement and providing recommendations. Be mindful of the latter, considering AI tools may be better at providing quantitative data than qualitative data, says Nelson. Qualitative data is an important part of budgeting because it takes personal values and triggers into account, she adds. “If someone were to just hand their budget over to AI without knowing the person, it might just slash certain expenses that really for the person are non-negotiable,” Nelson says. DON’T: HAVE UNREALISTIC EXPECTATIONS If you’re a hands-on investor, AI may be able to help you save time when it comes to researching and analyzing assets. But, you’d probably still want to verify any information given before taking action. The bottom line is that AI can be a helpful partner in managing some aspects of your finances, but it likely can’t provide the level of personalization needed to help you achieve your goals.
The article The Do’s and Don’ts of Using AI to Manage Your Finances originally appeared on NerdWallet.
ELIZABETH AYOOLA writes for NerdWallet. Email: eayoola@nerdwallet.com.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. and Inceptia do not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
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