Did you know that by 2022, 46% of financial businesses globally had already adopted AI tools? It’s not just companies benefiting from this technology—AI is also gaining traction in personal finance, particularly among younger generations. A 2024 report by Experian reveals that 67% of Gen Z and 62% of Millennials are using AI to assist with managing their finances.
Artificial intelligence (AI) is transforming not only the way we work but also how we manage our finances. When used effectively, AI can assist with smarter budgeting, quicker fraud detection, and more efficient overall financial management.
Research from the University of Chicago has shown that AI models, such as ChatGPT, can analyse financial statements to predict stock movements with accuracy. In some instances, these AI-driven predictions have outperformed human analysts, with one study revealing that AI-based predictions surpassed human forecasts by up to 15% in certain cases. This demonstrates the growing potential of AI as a valuable tool for retail investors seeking to make more informed financial decisions.
However, as technology advances, so too do the tactics used by scammers. A report from the European Commission found that 1 in 10 adults worldwide have fallen victim to an AI-powered scam, with 77% of those targeted reporting financial losses. On National Technology Day, Tomi Huttunen, a financial and technology expert from OCS, provides guidance on using AI effectively for financial management and shares five key warning signs to help protect yourself from online scams.
Tomi said, “AI can be a useful financial tool but it’s important to remember that scammers are becoming increasingly sophisticated.”
Smarter budgeting and saving with AI
AI-powered apps today go beyond simply tracking your spending; they can analyse your financial habits and suggest practical budgets. Some apps even save or invest your spare change automatically, without requiring any active input. As Tomi explains, “AI takes the guesswork out of saving. It helps you see spending patterns you might overlook and can prevent bad habits.”
Simplified investing
Robo-advisors powered by AI can create diversified investment portfolios tailored to your financial goals and risk tolerance. These tools adjust strategies based on market fluctuations, making investing more accessible to everyone. “You don’t need to be a Wall Street expert anymore to invest wisely,” says Tomi. “AI opens up investment opportunities to all.”
Safer online gaming and gambling
Several reputable gaming platforms now use AI to encourage responsible gaming, offering features such as deposit limits and spending tracking to help users manage their finances. “AI allows players to enjoy games safely, avoiding spending more than they can afford,” explains Tomi. “It’s a significant benefit for financial wellbeing in the gaming industry.”
Enhanced fraud detection
Banks and financial applications are increasingly using AI to quickly identify suspicious transactions. These AI systems learn typical spending behaviours and can flag any anomalies, often stopping fraud before it happens. “AI acts like an ever-present financial security guard,” comments Tomi. “It responds faster than any human possibly could.”
Custom financial advice
AI-driven financial coaching services are now available, providing customised advice on saving, investing, paying off debt, and setting financial goals. “Personalised financial advice used to be expensive, but AI makes it more affordable and accessible to everyone.”
The rising threat of scams
While AI offers many benefits, it also presents new opportunities for scammers to exploit unsuspecting individuals. As AI technology becomes more advanced, so too do the tactics used by fraudsters. Research shows that one in ten adults worldwide has fallen victim to an AI voice scam, with 77% of those targeted reporting financial losses. Scammers are using increasingly sophisticated methods to disguise fraudulent schemes, often presenting them as irresistible opportunities.
Huttunen warns, “Scammers are getting smarter too! AI can be a great financial tool, but it’s important to stay alert.” Flashy offers, fake apps, and promises of quick and easy returns should all raise red flags. If something seems too good to be true, it probably is. One common scam involves fake apps that steal personal data, making it crucial for users to only download from trusted sources and to always check app reviews.
Furthermore, scammers often encourage unusual payment methods, such as gift cards or cryptocurrencies, which are harder to trace. Huttunen advises, “Scammers use payment methods that are tough to trace or reverse. Stick to secure, conventional options.”
How to stay safe online
As AI helps make financial management smarter, staying vigilant against evolving scams becomes equally important. Some essential steps for safeguarding finances include downloading apps only from trusted sources, thoroughly researching any offers before engaging, and avoiding any pressure to act quickly. Scammers often use high-pressure tactics to rush decisions, so taking the time to think through any financial action can prevent costly mistakes.
Being aware of the types of scams that use AI technology is the first step towards protection. Regularly reviewing your financial activity, ensuring security measures are in place, and understanding how fraudsters operate can significantly reduce the risk of falling victim to online scams.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
