Season 2 Episode 35: The future of personal finance and artificial intelligence
Sep 4, 2023
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Explore how artificial intelligence is revolutionizing personal finance and job roles, including the integration of AI tools in financial planning. Delve into the debate on whether AI can replace human financial advisors, emphasizing the importance of emotional intelligence. Learn about the impacts of technology in education and the need for continuous discussions on effective integration.
AI can enhance efficiency in tasks like document drafting and data analysis, but lacks human attributes crucial for client interactions.
Financial planners should view AI as a complementary tool, emphasizing the importance of human-centered skills in serving clients.
Deep dives
The Rise of Artificial Intelligence in 2023
In 2023, artificial intelligence (AI) has become prevalent, with Open AI's chat GPT attracting over 100 million users and receiving 1 billion monthly visits. AI's capabilities include creating text documents, engaging in real-time chat interactions, and providing well-thought-out responses to specific inquiries. Concerns arise for knowledge workers as reports suggest that 27% of jobs are at high risk due to AI advancements, particularly affecting tech roles, legal professions, media, and creative industries.
AI Impact on Financial Planners and Jobs
Financial planners and other professions face the evolving landscape of AI technologies. While AI tools like chat GPT can enhance efficiency in tasks such as document drafting and data analysis, they are supplementary tools that lack human attributes essential for client interactions, empathy, and trust-building. Financial planners need to adapt to AI as a tool that complements their work rather than replaces their roles, emphasizing the importance of human-centered skills in serving clients.
Pros and Cons of AI Integration in Finance and Daily Life
Artificial intelligence offers various benefits, such as enhancing coding processes, improving productivity, and expanding accessibility in language and image-related tasks. However, AI tools like chat GPT exhibit accuracy concerns, potential biases, and limitations in understanding abstract concepts and emotional intelligence. Embracing AI technology requires a balanced approach where humans leverage AI as a supportive tool while retaining control over decision-making and maintaining essential human qualities in personal and professional interactions.
The rise of artificial intelligence (AI) has raised concerns for some when it comes to their personal finances. In this episode of Edelman Financial Engines’ Everyday Wealth™, Jean and wealth planner Andy Smith discuss the ins and outs of AI, including ChatGPT, and the opportunities and risks that it may present. Then, David Goldberg, senior vice president and chief data and analytics officer at Edelman Financial Engines, joins Jean and Andy to talk about what AI technology is and what it can and can’t do.
Ms. Chatzky receives cash compensation for acting as host of the Everyday Wealth podcast and for related activities and therefore has an incentive to endorse Edelman Financial Engines and its planners. That compensation is a fixed sum paid on an annual basis; and reimbursement for certain expenses. The amount paid each year does not vary, is not based on show content or any results-dependent factors (e.g., popularity of the show).
This show is prerecorded and any callers are prescreened.
The information being provided is for informational and educational purposes only and should not be construed as investment advice. Although some of the statistical and market information has been gathered from sources believed to be reliable, we do not guarantee its accuracy or completeness. You should consult with a financial advisor to help determine the best options for your particular circumstances.
This presentation is for informational and educational purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security. All investments have inherent risks. Past performance does not guarantee future results.