Whether it's customer service chatbots or summarized search results, AI is permeating every part of our online lives.
And while some may have concerns about its reliability, this week's Money Matters reader, Ben from Hull, trusts it for everything from mental health advice to cooking tips.
One of the only things the 24-year-old doesn't discuss with ChatGPT is money. However, he has trouble budgeting for himself.
Before seeking technical support, Ben wrote to: subway Consumer Champion Sarah Davidson shares her thoughts on AI financial advice.
problem…
I'm an avid user of AI tools and love ChatGPT, Claude, and all the others. At the moment, we use them to write emails, find new recipes, and find medical advice. I have also started talking to an AI therapist about my concerns.
I'm not good at spending money, and by the middle of the month I'm back in overdraft until my next paycheck arrives.
Thinking about using AI to manage your money, but it seems a little risky? Should you do it? Where should you start?
The answer is…
The use of AI tools such as ChatGPT, Copilot, Gemini, and Claude has exploded over the past year or two.
Considering how useful these tools are for many people, acting as virtual assistants, planning travel itineraries, and even providing therapy, it's not a huge leap to consider how they could help with financial matters.
In fact, more than half of UK adults already use it for this purpose, according to Lloyds Banking Group. Still, like in your case, there's something like a trust issue.
The Lloyd's survey also found that 83% of AI users said they were worried about data privacy, 80% worried about receiving inaccurate or outdated information, and 7 in 10 worried about lack or personalization.
We all know (and should) that generative AI collects online content and uses it to create new content. This is a real risk as there is no guarantee that true information is being collected.
And when it comes to financial decisions, it's important to base your choices on reliable guidance.
Another thing to note here is that while some areas of money management require little technical know-how, others are better served with the help of a qualified independent financial advisor.
It looks like you need some budgeting tips to avoid spending more than your monthly income, and a smart savings plan to get out of your overdraft for good. AI can definitely help on both of these fronts.
However, we recommend broadening your research to ensure that what the AI suggests is consistent with what educated experts are saying.
We cross-check your specific information with independent sources, including personal finance news sites, government-backed MoneyHelper sites, and companies and apps like Plum, Finder, and Emma.
You can also take tips from respected social media influencers. However, be very careful who you follow. Not all financial influencers are legitimate, so do your homework and don't feel pressured into making hasty decisions.
When deciding where to invest your savings, keep in mind that what is right for you may not be right for others. Think about what you are investing for, for how long, and how much risk you can take as a result.
Platforms like ii, Bestinvest and AJ Bell have great information online and can be trusted to help you figure this out if you want to do it yourself.
More metro money problems
It may be sometime in your future, but those with larger savings pots often seek advice from an independent financial advisor who can help you create a personal plan that is in line with your financial goals.
Purchasing a home is also a huge financial commitment, one that almost 90% of people undertake with the help of a well-qualified and regulated mortgage broker.
The benefit of this is that you get tailored advice based on your income, expenses and other financial interests.
Some places charge fees to borrowers, but and Some earn fees from mortgage lenders, while others provide 'free' advice and rely solely on their fees.
A final warning – do not enter your personal financial details into AI tools unless you have a subscription that prevents your data from being published. Economic ruin awaits them.
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Email us at MetroLifestyleTeam@Metro.co.uk.
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