Artificial Intelligence Can Help You with Your Finances…Here’s How.

Artificial intelligence is all the rage. AI-related stocks have boomed, and companies are deploying new resources leveraging this exciting technology. If you haven’t interacted with ChatGPT or any of the other large language models available, I suggest you give one a try.

There are many ways you can leverage these tools, but the one I want to highlight is research. You can ask the model a question, and in seconds (or less), receive a sophisticated response. What would traditionally take hours of combing through search results and reading numerous articles, now takes no time at all.

When it comes to finances, there is so much to learn and consider. Why not leverage the greatest research assistant in the history of mankind?

Below, I have included some ways that you can do that.

Use Cases

• Comparing the historical return of different ETFs (or stocks)
• Creating or altering a budget specific to your circumstances
• Exploring some basics: how interest works, retirement account options, student loan education, types of insurance etc.
• Tax-optimized investing
• Financial planning for major life events: buying a home, marriage, saving for a child’s education etc.
• How to improve your credit score

I asked ChatGPT to perform an analysis of two popular ETFs tracking the S&P 500 Index, with this prompt: “Please compare the key features, historical returns, and expense ratios of VOO and SPY”.

I received the following:

I provide this as an informative example only, and not to suggest you should purchase either option.

It’s worth noting that as you ask questions, the model builds a history specific to you. Therefore, there is a compounding effect on how the model can assist. It’s similar to having a conversation with someone that you know well, where you don’t have to reintroduce or educate them on something you have already discussed.

As with all technology there are limitations, and the models sometimes provide inaccurate or ill-advised information. It’s important to consider the type and scope of the information you are seeking, and to what extent you are comfortable accepting the response as truth without verifying externally.