AI: When your financial advisor is a chatbot

More and more people are turning to AI chatbots for things like tax assistance and investment advice.
And even his retirement plans, he said. Kailyn Rhone in new york times. According to research from Intuit Credit Karma, nearly one-third of people who have used artificial intelligence for financial advice have asked questions about retirement. I can understand the draw. Artificial intelligence tools are “easy to access, respond instantly, and often come at no cost.” Users can also ask chatbots “questions that you might be embarrassed to ask a human advisor.” Caitlin Yinglin, a Dallas recruiter, looked at her 401(k) for the first time last September and noticed her investments were in a target-date fund for people retiring in 2015. She turned to ChatGPT, which “encouraged me to reallocate my investments using more aggressive strategies,” which was good advice for a woman in her early 30s. She also reviewed these changes with a human financial advisor.

You can’t trust your money completely to bots, he said. Peter Coy in wall street journal. “They’re sociopaths, they’re talkative, they’re vindictive, they lack empathy.” Maybe one day, AI will become a “true fiduciary.” But understanding the laws, regulations, and case law is not enough. They must also develop “a digital equivalent of empathy, humility, and a sense of fairness.” For now, bots are biased, make mistakes, and are “not trained to act in the best interests of users.” Credit investing would seem to be a “natural area for large-scale language models to be deployed,” he says. Sujeet Indap in financial times. “Investing in loans and bonds requires as much math as reviewing legal contracts and knowledge of the law.” But Wall Street investors remain hesitant to leave everything to machines. There is still value in “human service” and the ability to “pick up the phone and get trade ideas from a human expert.” In some ways, AI has shown Wall Street that “the relationship-based part of work is more important than ever.”