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I Tried ChatGPT as a Budgeting Tool. It's Not There Yet
It's official: there are way too many ways to spend money too easily in 2024. Not only is the urge to impulse buy supercharged by the litany of ads across our social feeds promising solutions to every possible perceived problem, but pay-over-time options and preloaded credit card information in our browsers barrel right through the flimsy barricade of financial responsibility. At any given moment, you're a few clicks away from a purchase that could send you further into the depths of debt and the only thing stopping you is the angel on your shoulder pleading with you not to buy a new $300 mechanical keyboard. In my case, that well-meaning noob loses to the devil perched in a $600 gaming chair every time. Enough, I say! In an effort to get the spendthrift Satan behind me, I researched every budgeting tool and service purporting to leverage artificial intelligence to help people recover some control over their wallets. The tools were all very similar, with tracking elements that required users to provide or directly connect their private banking and credit card information to the app or service. Lots of tools claim to offer AI integration, but they were all tacking on the buzzword of artificial intelligence when what they really offered was a basic chatbot that could only understand and operate with the limited information it was provided by my spending habits. Since ChatGPT -- the conversational generative AI tool powered by a large language model so it actually "learns" -- could directly respond to my queries while leaning on the mass amounts of data it's been trained on, I hoped the combination of crowdsourced knowledge and specific budgeting parameters might be the best way to discover how to curb spending. I started by asking the free version of ChatGPT to give me some tips on how to financially manage a two-person millennial household making $200,000 annually. I based this amount on various results from news reports estimating the average income needed to live "comfortably" in my hometown of Los Angeles, give or take. Here was the prompt: "Can you incorporate these questions and elements into an overall budget for a two-person millennial household making $200K annually? How much should we be spending on the categories of mortgage, groceries, entertainment, savings, trips and vacations, household expenses, shopping for clothes, and unexpected expenditures? We don't want to scale back on entertainment which is currently coming in at about $800/month." I got the basic budget breakdown, with essentials like housing and frills like entertainment, shopping and vacations, and what the minimum and maximum estimated numbers would be for each, including the 20% of income savings recommended by financial advisors. But there was no real guidance on how to keep myself in check when faced with tempting purchases. So, I went deeper and asked ChatGPT how I might remind myself to stay away from shopping too much, and surprisingly, the answer was more shopping. Kind of. ChatGPT recommended I apply something called the 24-hour rule and wait at least a day to think about it before making any large purchases. Kind of like a self-imposed cooldown period so you don't go on a shopping spree. "We can set up a system where you log potential purchases and revisit them after 24 hours to assess necessity," ChatGPT offered. The tool also suggested considering the cool, extra expensive stuff you could buy later if you save up by not buying lots of the cool, yet more affordable, stuff now. The idea is you tell yourself you won't get the limited edition this, so you keep your goal focused on the ultimate platinum edition that, instead. I'm currently saving up for a bougie road trip across the country with luxurious hotels and lots of national parks. Saving my coins could mean the difference between sleeping in my car and traveling in style. ChatGPT also recommended some bank and credit card integrated budgeting tools that alert you to spending limits like YNAB, Mint -- which notably no longer exists -- and PocketGuard, as well as using prepaid cards with strict limits to stop the spend, but none of them actually utilized AI in the way I was hoping. It even suggested other AI bots like Cleo, Trim and Albert, which can connect to your bank accounts and give you insights on your spending, negotiate bills, cancel subscriptions and give you personalized spending advice. What I'd like to see, though, is an AI-powered browser plugin that guilts me when I put items into my cart on an e-commerce site, or a chatbot that's capable of walking me through why I specifically can't afford to fly to the Maldives last minute just because I don't want to unload the dishwasher and got overwhelmed. Until someone creates an AI tool smart enough and responsive enough to metaphorically slap the credit card out of my hand, helping people curb their spending habits might be a job better handled by humans. For ways that AI can actually be helpful, check out CNET's AI Atlas hub for pieces on how to use Microsoft Copilot to easily create notes on just about anything and how to use ChatGPT to find the job of your dreams.
CNET
Tue, 9 Jul, 8:00 PM UTC
Council Post: The Transformative Impact Of AI On Financial Services
Gianluca Sidoti is an Independent Financial Advisor, Founder of TraDetector and Managing Partner at Citadines Capital SCF. In the rapidly evolving world of finance, artificial intelligence (AI) stands out as a transformative force reshaping the landscape of financial services. As an independent financial advisor, I have seen firsthand how AI's integration into various aspects of financial management can significantly benefit clients, streamline operations and enhance decision-making processes. This article explores the multifaceted impact of AI on financial services, backed by practical examples from my professional experience. One of the most notable applications of AI in finance is its role in enhancing investment strategies. AI-driven robo-advisors are becoming increasingly popular, providing personalized investment advice based on sophisticated algorithms that analyze vast amounts of data. These robo-advisors consider factors such as market trends, economic indicators and individual client preferences to create tailored investment plans. For instance, one of my clients, initially skeptical of automated financial tools, decided to allocate a portion of his portfolio to a robo-advisor. This move was part of a diversified investment strategy that balanced traditional financial advisory services with AI-driven insights. Within a year, he observed a 12% increase in his returns, significantly outperforming his manually managed investments. This experience highlights how AI can offer robust, data-driven investment recommendations that adapt to market fluctuations in real time. AI's ability to process and analyze large datasets at unprecedented speeds has also revolutionized risk management and fraud detection. Financial institutions are leveraging AI to identify potential risks and detect fraudulent activities by analyzing transaction patterns and identifying anomalies that may indicate suspicious behavior. In my practice, I've utilized AI tools to monitor client accounts for unusual activity. For example, a client who frequently traveled internationally faced the risk of unauthorized transactions on his credit cards. By implementing an AI-driven monitoring system, we were able to detect and respond to a fraudulent attempt almost immediately, preventing significant financial loss. This proactive approach not only protects clients' assets but also enhances their trust in financial advisory services. Customer service in the financial sector has been significantly improved through the use of AI-powered chatbots and virtual assistants. These AI tools can handle a wide range of customer inquiries, from account balances and transaction histories to more complex financial advice, providing 24/7 support and quick resolution of issues. One practical application involved a client who frequently needed updates on his investment performance but had a busy schedule that made direct communication challenging. By integrating an AI chatbot into our service platform, he could access real-time information about his portfolio and receive timely updates without the need for constant direct interaction. This not only saved time but also ensured he stayed informed about his investments. AI is also transforming financial planning and advisory services by providing advisors with advanced tools to better understand their clients' needs and goals. AI-driven analytics can assess a client's financial health, predict future financial scenarios and recommend strategies to achieve long-term financial objectives. For example, I have used AI-powered financial planning software to help clients visualize different retirement scenarios. By inputting various variables such as income, expenses, savings rate and expected retirement age, I can get the AI tool to generate multiple retirement projections, allowing my clients to see the potential outcomes of different financial strategies. This level of detailed, personalized planning was previously time-consuming and complex, but AI has made it more accessible and accurate. Despite its numerous benefits, the integration of AI in financial services also presents several challenges and ethical considerations. Data privacy is a significant concern, as AI systems require access to vast amounts of personal and financial data to function effectively. Ensuring that this data is securely stored and processed is paramount to maintaining client trust. Moreover, the reliance on AI algorithms raises questions about transparency and accountability. It is crucial for financial advisors to understand the underlying mechanisms of AI tools to explain their recommendations to clients clearly. Additionally, there is a need for continuous learning and adaptation as AI technology evolves to stay ahead of potential biases and inaccuracies in AI-driven decisions. Looking ahead, the role of AI in financial services is expected to expand further, with ongoing advancements in machine learning, natural language processing and predictive analytics. These technologies will enable even more sophisticated financial products and services, tailored to meet the unique needs of each client. One emerging trend is the use of AI in environmental, social and governance (ESG) investing. AI can analyze large datasets to assess companies' ESG performance, helping investors make more informed decisions that align with their values. This is particularly relevant as more investors seek to integrate sustainability into their portfolios. Another promising area is the use of AI in financial education and literacy. AI-driven platforms can provide personalized financial education resources, helping individuals improve their financial knowledge and make better financial decisions. In conclusion, AI is undeniably transforming the financial services industry, offering numerous benefits, from enhanced investment strategies and improved risk management to better customer service and personalized financial planning. As an independent financial advisor, embracing these technological advancements has allowed me to provide more comprehensive and efficient services to my clients. However, it is essential to address the associated challenges and ethical considerations to ensure that AI is used responsibly and transparently. By staying informed about the latest AI developments and continually adapting to new tools and technologies, financial advisors can leverage AI to deliver superior value to their clients, helping them achieve their financial goals in an increasingly complex and dynamic world. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Forbes
Mon, 8 Jul, 12:01 PM UTC
Top 10 AI Tools to Earn Quick Income
Chatbot Development S involves the creation of unique chatbots for businesses with an emphasis on communication with customers and assisting. These are software applications powered by artificial intelligence that help individuals and businesses automate tasks to increase productivity and profitability. How can AI tools help in earning income? AI tools streamline processes like content creation, graphic design, digital marketing, and customer support, enabling users to deliver high-quality services efficiently. Are these AI tools beginner-friendly? Yes, many AI tools come with user-friendly interfaces and tutorials to help beginners get started easily, even without extensive technical knowledge. Can these tools be integrated with existing platforms? Most AI tools are designed to integrate with popular platforms such as WordPress, social media networks, and e-commerce platforms for seamless operation. What types of tasks can AI tools automate? AI tools can automate tasks such as content writing, video creation, ad campaign management, transcription, editing, and customer interaction through chatbots. Do AI tools require constant monitoring? While some initial setup and monitoring may be required, many AI tools operate autonomously once configured, reducing the need for constant oversight. How reliable are AI tools in delivering results? AI tools leverage advanced algorithms to deliver accurate results consistently, ensuring high-quality outputs that meet user expectations. What are the benefits of using AI tools for income generation? Benefits include increased productivity, scalability, cost-effectiveness, improved service quality, and the ability to offer competitive services in the market. Can AI tools help in diversifying income streams? Yes, AI tools enable users to expand their service offerings and reach new markets, facilitating the creation of multiple income streams. Are there any risks associated with using AI tools for income generation? Risks may include initial learning curves, dependency on technology, data security concerns, and the need to adapt to evolving AI capabilities and regulations.
Analytics Insight
Mon, 15 Jul, 6:02 AM UTC
AI Alpha Crypto Bot Overview
In the modern world, artificial intelligence (AI) is being applied in various fields, including the cryptocurrency market. Developed by the Quantum Engineers team, the AI Alpha crypto bot is one of the leading tools that automate trading on cryptocurrency platforms such as Bitfinex, Exmo, and others. This review will examine the operating principles, interface, transaction statistics, and other features of the AI Alpha crypto bot.
Analytics Insight
Tue, 27 Aug, 2:11 PM UTC
Banks Tap AI for Estate Management and Compliance
Artificial intelligence (AI) is giving financial institutions new tools to meet their goals. Wells Fargo's AI-driven estate management is boosting customer satisfaction, while Treasury Prime has partnered with Kobalt Labs to streamline bank compliance using AI. Wells Fargo has reportedly seen a significant improvement in customer recommendations after implementing AI in its estate management processes, according to a Wednesday (Aug. 21) report from Computer Weekly. The bank's Estate Care Center (ECC), established in 2018, has been at the forefront of streamlining the often complex procedures families face when managing the finances of deceased relatives. Sangeeta Doss, head of the ECC, told Computer Weekly that the bank's net promoter score -- a key metric for customer satisfaction -- has surged from negative territory to over 60 for bereaved family members interacting with the bank. This dramatic increase reflects the success of Wells Fargo's strategic investment in AI and business process management software. "[Before the IT systems were linked,] you would have to go to every department separately and report the person deceased for every product and service you own with us," Doss told the publciation. The bank's current approach has enhanced customer experience and contributed to business growth. Wells Fargo has observed increased asset retention and new account openings, with some family members transferring their accounts to the bank after receiving assistance during bereavement. Wells Fargo partnered with Pegasystems, a Boston-based business process management specialist, to overcome the technical challenges posed by the bank's vertically structured products and services. This collaboration enabled the integration of various departmental systems, creating a more cohesive and efficient process for managing estates. The ECC, which now employs approximately 800 people globally, handles around 500,000 deaths annually and manages $32 billion in transfers each year. As Wells Fargo continues to refine its AI-driven estate management services, including ongoing integration with its brokerage services, the bank is positioning itself as a leader in customer-centric financial technology solutions. Treasury Prime, a San Francisco-based embedded banking software provider, partnered with AI startup Kobalt Labs to reduce compliance costs for banks venturing into embedded finance. The deal adds Kobalt Labs to Treasury Prime's Partner Marketplace, offering banks in its network access to AI-powered tools for managing third-party risk and compliance. This move comes as financial institutions seek ways to scale their Banking-as-a-Service (BaaS) programs while facing mounting regulatory pressures. "Compliance costs are a big consideration for banks as they weigh the investments associated with embedded banking," Kyle Costello, head of partnerships at Treasury Prime, said in an Aug. 20 news release. " By partnering with Kobalt Labs, we're enabling our bank clients to access new capabilities for third party risk management compliance as they scale their BaaS programs." Kobalt Labs' platform, which synchronizes with current financial regulations and security standards, aims to conduct rapid checks on vendor documentation against regulatory requirements. The company claims its technology can boost internal diligence capacity by over 400%. The partnership highlights the growing role of AI in financial compliance, a trend industry observers say could reshape how banks manage risk in an increasingly digital landscape.
PYMNTS.com
Tue, 27 Aug, 8:02 PM UTC
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