The Future of Personal Finance: AI and Automation

The Future of Personal Finance: AI and Automation

With new advancements in artificial intelligence (AI) every year, more people and companies are turning to AI for financial assistance. AI has been incorporated in various ways to make personal financial management simpler. Exploring ways AI and other technological advances like automated savings, may help you gain greater control over your finances. Talk to a Chattanooga bankruptcy lawyer if you have any concerns related to bankruptcy.

Pros and Cons of AI in Personal Finance

There are multiple pros and cons of AI in personal finance to consider. Exploring these pros and cons may help you decide whether AI is right for you when it comes to your personal finances. The pros of AI in personal finance include:

  • Automated financial tasks and tools
  • Increased accessibility
  • Quicker answers and guidance
  • Personalized financial advice

AI has the potential to automate various financial tasks like budgeting, saving money, investing, and tracking spending to find areas to cut costs. Since AI can be accessed through technology, AI can be accessed anywhere, likely at little to no cost. Many AI chatbots and services provide solutions within seconds, leading to quicker guidance.

The cons of AI in personal finance include trust issues with online technology, lack of regulation of AI, potential bias from algorithms, and the lack of human intuition. AI operates based on data and algorithms. All it takes is one error to lead to potential financial mistakes and problems. Human intuition can sometimes prevent these errors.

While AI-driven wealth management can make managing personal finances more efficient in many ways, humans are still needed in some areas. AI is often used in financial services and businesses to do simple tasks like putting together investment percentages, scoring client accounts, and identifying investments of interest. However, these organizations still have human workers explaining these results to their clients.

Does Automated Savings Help?

Automated savings existed before AI started becoming mainstream. What automated savings was promoted to do is to help anyone with financial or spending problems save money no matter what. However, some argue that automated savings is not enough and that people also have to put effort into saving money.

Various banks, banking apps, and budgeting apps have features that allow users to automatically set aside a certain amount of money each week or month into their savings account. The idea is to prevent any hesitation people may feel when putting money into savings themselves. When a machine does this automatically, there is no room for hesitation or changing your mind.

AI may play a role in guiding others on how much money to put into savings. There might be innovations related to AI taking over automated savings. Either way, this remains optional for those looking to manage their finances.

Contact Tom Bible Today

Falling into bankruptcy can be intimidating but you may not have to do this on your own. Feel free to call us at Tom Bible Law by dialing (423) 424-3116 for a consultation about your finances. Our legal team of Tennessee bankruptcy attorneys is prepared to assess your financial options related to bankruptcy given your unique financial situation. We can be found throughout the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.

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