Would You Take Financial Advice From A.I.?

Artificial intelligence (A.I.) has been making waves in various industries, and finance is no exception. A.I. is now being used as a financial planning and advice tool, with values such as accuracy, humanity, security, and accessibility all jostling for prominence. But the question arises: who–or what–will we be asking to advise us on some of life’s most important decisions?

Generative A.I. Chatbots and Retirement Planning

Several chatbots like ChatGPT are now available and have the ability to respond to complex questions. Paul Weiner, an artist, turned to ChatGPT for advice on his retirement planning. He got suggestions from the chatbot to open a Roth Individual Retirement Account, Certificates of Deposit, automate his savings, and create a budget. Many others are using these chatbots to get financial advice for free.

However, these chatbots can only provide limited information, and the explanations may be insufficient for some complex financial knowledge. Therefore, many are still opting to work with financial advisers for proper financial planning. The question is whether or not A.I. chatbots will replace the functionalities offered by financial advisers.

Integration of A.I. in Financial Services

Intuit, known for software products such as Mint and TurboTax, has been integrating A.I. into their platform for over a decade. Today, the company’s platform performs 58 billion machine learning predictions per day. Another Intuit product, QuickBooks, predicts cash flow for small businesses, and the company has found that when it gives users advice based on artificial intelligence, 95 percent of small-business owners take that advice.

A.I. is now an important tool in the financial industry, but it’s still in the learning phase. Though it provides plausible stories and ideas, these might not always be correct, and the advice may not be grounded in reality and personalized data. For Intuit, A.I. and human interactions work together, where users can meet with a live expert, and then A.I. will create a categorized and tagged summary of the conversation for later review.

Related Facts

• A.I. chatbots are useful for getting basic financial advice, but they lack personalization and might not provide in-depth knowledge.
• A.I. is not a threat to the human workforce in the financial services industry. Instead, it’ll be a valuable tool that enhances the customer experience.
• A.I. creates a more accessible and affordable option for those who cannot afford a financial adviser and opens the door to people who want financial advice but are intimidated by traditional methods.

Key Takeaway

In conclusion, A.I. is the future of financial advice. However, human interactions still play a crucial role in the financial industry. Financial planners can use A.I. and chatbots as tools to enhance their services and provide more accessible and affordable options for users.