AI in Finance: How Artificial Intelligence is Shaping the Future of Money

AI and Money

Artificial intelligence is not a technical concept linked to some tech savvy companies. It is invading all our spaces to empower us. It is also one of the most powerful tools in the world of finance.

It can be your guide to investing money, tracking your investments or even discover fraud. AI works to facilitate our financial transactions on online websites or in transferring money in digital payments. 

All this without being seeking expert help. 

Defining AI 

 Artificial Intelligence or AI is when apps are trained to replicate or even excel human efforts, when our gadgets are trained to think like us, speak like us, act like us. How do they do this? By analyzing data, by identifying common patterns and specific programs.  

In the area of finance, it can:

• Help you to save money

• Help you to invest better

• Detect suspicious monetary transactions 

So, you have a smart assistant constantly at your side to help you. 

AI in Your Everyday Life

You might be unwittingly be using AI without being aware of it

• While making digital payments through Google pay or Phone Pe or Apple Wallet. These platforms use AI for cashback tracking or for suggesting merchandise based on your past spending and preferences. 

• Various budgeting apps like Mint and YNAB utilize AI to study your expenses and compartmentalize it. 

• Even banking apps use AI when it suspects any suspicious transactions.

• Investment apps such as Zerodha or Groww use AI to suggest best stock investments and funds to suit your goals

Hence in all probability, AI has been at the back of all your recent financial dealings, investments and dealings. 

What is the role of AI in Finance? 

AI is changing the face of the financial world and its workings. It is 

• Carrying transactions in minutes since it can process data in a fraction, in ways faster than any humans can

• It is highly accurate and can easily spot errors which a human can miss.

• It is personalized and serves your personal interest 

• It can complete repetitive tasks like data entry or loan processing within minutes, thus sparing people the time and the energy to focus on real problems. 

AI is a smart manager, operator and makes finance management easier and faster. 

Does AI Make Errors?

It can. It is not infallible. Why and How?

• It feeds on data available and if the existing data is corrupted, AI can make mistakes

• It can even read transaction labels wrongly, hence might suggest incorrect things

• AI transactions also raises concern about privacy, because it can access financial data to work efficiently. 

Human intelligence still is still irreplaceable. AI can support us and not overcome us. 

Hence by understanding monetary management we as teens can use AI to manage payments and shopping transactions while also being prudent in using it, reflect on issues such as ethics and privacy. 

AI is not only changing the way we spend and negotiate money, it is also changing our notions of banking, investments, indicating trends. And the most encouraging thing is- it simplifies tough decisions and makes life easy. You do not have to be wizard and a coder to fathom the working of AI in finance. All you need is a curious mind with an urge to learn, to understand the way AI shapes our financial destiny.