Artificial Intelligence, also known as AI, has come a long way in recent years. From playing a huge role in healthcare, manufacturing, retail, and hospitality, AI is looking to becoming a vital part of our everyday lives.
One area where artificial intelligence will be very useful is in the money management department. Whether for individuals or businesses, AI is poised to take over the money and wealth management sector, ensuring that people get the best insights when it comes to wealth creation and money management.
But what can artificial intelligence do to help people better manage their finances?
Identifying Potential Saving Opportunities
When we shop online, we leave behind a trail of information that can be used by retailers and advertisers to upsell their products. But this same data can provide valuable insights that will help identify potential money-saving opportunities. AI can analyse this data to find similar items that you can buy or to find alternative stores online where you can buy the same thing for less.
AI can also take this a step further by analysing data generated by your Internet of Things (IoT) gadgets to determine where you can make savings on utility and other expenses. It can also remind you of bill payments so that you can avoid penalties. It will also be able to sync with your banking apps, and access things like your current and savings account so that you can keep track of your payments, savings, and spending. This will help you have a better idea of where your money is going.
Improved Investment System
The typical investment system is one where the investor identifies a viable opportunity, does the necessary research and decides whether or not to take the risk. A lot of the time, intuition and experience play a vital role in investment decisions. However, in recent years, the emergence of automated investment robots and algorithms has made the process somewhat more efficient and foolproof.
As artificial intelligence becomes more advanced, a time will come when there will be little or no need for human input. The programme will be able to .to a high degree of certainty, identify viable investment opportunities so that the risk of loss becomes very marginal.
Unrestricted Access to Vital Information
For many years, artificial intelligence and learning algorithms, as well as access to other helpful technologies have been available only to top investment bankers, financial institutions and hedge fund organisations. This meant that only a few people had access to the data needed to make informed investment decisions.
However, as artificial intelligence becomes more mainstream, we will come to see a widespread application of artificial intelligence technologies, meaning that everyone will have access to the information that will help them make sound financial decisions.
Reduce Risk in Trading
As already established, AI will help day traders and investors by analysing data to determine profitable opportunities. This would mean that traders can now avoid the high-risk margins and inefficiencies that come with human trading, particularly helping to prevent speculation-based errors.
Furthermore, AI will be able to detect anomalies in the market before they escalate and suggest options for preventing market manipulations, thus minimising the chances of getting caught off guard in a wrong trade.