8 Ways Generative AI in Finance Is Changing How We Deal with Money
Smarter spending, saving, and investing are all just a quick virtual chat away
العربية
.svg)
Artificial intelligence and money. Perhaps not two things we’d automatically put together, but the truth is that it’s a partnership that’s set to transform the way we handle our spending, savings, and investments.
Generative AI in finance is the term that experts are using to describe this phenomenon. A powerful tool that’s still in its early stages, many believe it’s about to make our lives easier via:
The latest research suggests that many of us agree.
50% of UAE citizens would be interested in using AI to advise them on large financial decisions like buying a house or saving for retirement, according to a recent survey by global consultancy Oliver Wyman. 36% even said they’d prefer it over human advice.
Source: Oliver Wyman
So, just how can generative AI in the banking and finance industry make an impact on our lives?
Let’s take a deep dive into how generative AI differs from traditional artificial intelligence and what the key use cases for this technology are regarding our money.
What if you had 24/7 access to expert financial help? Maly’s AI financial assistant is just that, an intuitive money management tool that’ll help you spend better and save smarter.
Generative AI is the latest chapter of artificial intelligence and it has new powers that traditional AI doesn’t have. It’s this advanced capability that can help us with our finances.
The key to understanding this is that generative AI creates new information based on data, instead of simply recognizing and reporting data.
Bernard Marr, author of Generative AI in Practice sums it up in a recent Forbes article: “Traditional data can analyze data and tell you what it sees, but generative data can use that data to create something entirely new. It’s like an imaginative friend”.
It’s this new ability that can help us spend, save, and invest smarter than ever before thanks to new applications of generative AI in finance. Because they’re intuitive, the more data we tell them about our money habits, the more they learn and the better advice they can give us.
The next section explores the eight real-life ways generative AI in finance is set to change our lives.
Generative AI in finance isn’t just a possibility anymore: there are already several practical applications on the market that are about our financial mindset forever.
Here are the eight main generative AI use cases in finances to look out for.
The world of finance can be confusing, especially for young people with little experience in managing their money.
Generative AI in finance is helping to demystify many tricky money concepts by assuming the role of a virtual tutor. Already ChatGPT-style apps exist that accurately answer money-related questions and even go as far as to provide detailed guides and step-by-step instructions for more complex topics.
These apps can also adapt their answers according to whether you’re a beginner or an expert. They even provide educational games for youngsters (or anyone who feels like playing them) that test what they’ve learned.
It’s an example of the gamified approach that has proved to increase retention among learners: research journal Science Direct found that gamification gives students an 89.5% improvement in learning over traditional education.
The beauty of learning in this way is that you can do so at your own pace. There are no deadlines to meet or exams to pass; instead, it’s the ultimate example of self-learning where you can choose to dig deeper if you so choose.
You can even choose in which form you wish to receive the information, be it in summary form or as a series of bullet points.
It’s important to remember, however, that AI-generated content isn’t always 100% correct, so asking it to back up the information with primary sources (that you can check) is a smart idea.
You’ve probably heard of robo-advisors and how they’ve changed the way we invest, but generative AI is set to take these to the next level.
Imagine speaking with your robo-advisor, who then crafts a personalized investment strategy based on your goals. This might be sensible stock purchases if you’re going for a long-term retirement fund, or something a little riskier if you’d like to accumulate wealth quicker.
A generative AI investment tool would also break down complex financial jargon and provide transparent updates so that you always understand what you’re putting your money into and why.
The power of these tools has led many people to ask questions like “Will AI replace financial advisors?”
These queries may be premature. Many experts believe that (for the next decade at least) GenAI investment advice works best with input from a qualified human advisor, so a hybrid approach will offer you the best of both worlds.
As technology advances and transparency increases, even cautious investors will see the value of GenAI in making smart investing available to everyone.
Expensive financial advisors aren't the only option anymore. New AI tools are emerging that can help you build a personalized wealth plan, free of charge.
One example is having the virtual money coach mentioned earlier analyze your spending habits and suggest specific money-saving tips.
Let’s say you’re struggling with debt. AI can create a strategic payoff plan that will slowly guide you out of the red without putting you at further risk.
It can even simulate different repayment plans, such as the "snowball" (paying small debts off first) and “avalanche” (prioritizing high-interest debts), and compare them to help you choose the most effective one.
Need to negotiate with creditors? AI can role-play these scenarios, giving you feedback on your communication technique so you can approach real negotiations with confidence.
Financial tasks like these would take a human several hours, if not days, of researching and planning to achieve. AI can do it in seconds.
Many of us are sick of spreadsheets and paperwork, but organizing your finances is another string that GenAI has to its bow.
Generative AI in finance and accounting means it's now possible to automatically pull data from online bank statements, receipts, and invoices (with your permission) and save you hours of manual entry. The chances of human error or misplaced receipts are eliminated as AI does it all in seconds.
The technology can then analyze this data to categorize it, give you valuable spending insights, and even warn you about unusual activity.
This means you get the information you need to stay safer and make smarter financial decisions with confidence.
Tired of flipping through coupons or scouring discount websites for the best deals? Thankfully, those times are fading fast.
AI shopping assistants have entered the shopping arena, acting as your personal bargain hunter. These tools scour the web for exclusive discounts and promotions with a few simple search instructions.
Ranging from a simple browser extension to a part of a AI-powered financial wellness platform, they can analyze your purchase history and browsing habits, then learn what kind of products and services interest you most and provide specific recommendations.
They can track the price of specific items and send you alerts when the price drops so that you never miss out on a bargain, and even find and apply the right coupon code at checkout.
Some money management apps in the UAE have this technology built into their software so all you have to do is sign up and let the magic of AI start finding you the best deals.
Budgeting and planning is one thing, but sometimes it’s difficult to stick to sensible spending in practice.
AI-powered tools will help us spend smarter by analyzing our spending habits (and comparing our income to our expenses) to give us real-time feedback. They can also categorize your spending (think "groceries" vs. "entertainment"), and identify areas where you might be able to cut back.
Let’s say you want to fund a vacation. An AI-produced spending plan will create a separate pot for this and guide you away from unnecessary purchases while you follow it.
It will also add a sense of gamification to it, including challenges and milestones, so that you have fun along the way.
The great thing about building great spending habits is that we tend to stick to them, just like we would a bad habit.
Soon, we’ll not even have to think about making the right spending choice, we’ll just do it automatically – especially if AI has our back.
Savings are the one money-related issue that many of us struggle with, yet generative AI can come up with creative ways to put away funds for a rainy day – often without us realizing it.
Here are three ways it can supercharge your savings.
AI can help you set realistic savings goals based on your income and spending patterns. No more guessing – AI does the heavy lifting, suggesting achievable targets that motivate you to stay on track.
New AI-powered money management apps, allow you to create multiple virtual savings cards, or "pots", for specific goals. This allows you to categorize your savings, one pot for a dream vacation, another for a down payment on a car, and so on.
Seeing your progress visualized in separate pots is a powerful motivator to keep saving.
AI can analyze your daily transactions and automatically round up the purchase amount to the nearest dollar or dirham.
They may appear insignificant, but these small amounts add up quickly, painlessly boosting your savings over time. Think of it as a digital piggy bank that fills itself every time you spend.
Dealing with money-related issues can be tedious, especially for teenagers who tend to find most things boring.
The good news is that AI is helping to make even something as mundane as a Visa card design exciting by letting users design them in any way they can think of.
This might be a virtual card featuring a favorite superhero, a motivational quote, or even an image of a family pet.
All you need to do is type the idea into an AI theme generator for virtual cards and let the tech work its magic.
It goes just beyond cool designs, of course. Having separate virtual cards for different spending categories makes budgeting easier for restless kids. They also give them their own identity and turn money management into a positive learning experience.
Let’s not forget virtual cards add an extra layer of security with unique numbers separate from your main bank account.
_____________
From an AI-powered bargain hunter to superhero virtual savings cards, the future of AI in finance certainly won’t be dull. Are you ready for the ride?
Ready to find out how AI can help you build savings? Download Maly’s money management platform today and take the first step toward a wealthier future for you and your family.
Download the Maly app by clicking on one of the buttons below and get started in just a few minutes
