In recent years, many personal finance applications have started offering artificial intelligence (AI) tools as an affordable alternative to human money managers. But do they always provide the right advice?
Many apps leverage AI to offer users a more consumer-friendly overview of their finances by automating savings, predicting expenses, analyzing spending trends, and identifying anomalies like fraud. An October 2024 Experian report found that 96% of those who’ve tried AI-driven finance apps (many of whom are millennials and Gen Z) reported having a positive experience with the technology, noting that it can demystify and improve financial health.
Also: Perplexity AI’s new tool makes researching the stock market ‘delightful’. Here’s how
However, AI remains an unregulated technology, and a model is only as strong as its training. While AI can deliver big-picture insights to those who can’t afford personalized money managers, it has drawbacks. Here’s what to know if you’re considering using an AI finance tool.