Abdul Aziz Mondal, 16 hours ago
3 Ways ChatGPT Can Help You with Your Finances
ChatGPT has made splashes across virtual headlines as the next advancement in generative AI, but this chatbot does more than pen a professional email or writes code on your behalf. The natural language processing model can moonlight as a pocket financial tool, helping you manage your money in better ways.
While ChatGPT isn’t perfect — and we’ll get into the whys of that later — it can supplement your money management style by automating some of the more taxing or tedious chores on your to-do list.
The benefits of technological advancements in shaping the financial industry are beyond measurable. But when it comes to ChatGPT particularly, there are various ways to boost your investment strategy. Here are some financial tasks ChatGPT might be able to help you with:
Making a budget has to be one of the most boring yet important tasks on your list. This spending plan helps you identify problem areas in your spending and prioritize financial goals. However, it takes time to determine the best use of your money in a way that balances fun things with essential savings.
You can automate this step by punching the black-and-white numbers of your budget into ChatGPT. You just have to tell it everything to do with your financial situation, listing all your earnings and all your expenses. Then, ask it to make a budget that helps you save a certain amount of money each month.
It might not generate a perfect spending plan on its first try, but you can keep refining your requests to improve its responses. The more specific you get, the better.
ChatGPT does not have real-time access to the Internet; its data models date to go beyond 2021, so it won’t be able to research today’s personal loans and come back with results. It’s not a real-time aggregator or loan comparison tool. However, it can help you compare personal loan details that you feed it if you need financial help in the near future.
You can copy and paste rates and terms from a variety of different lenders into the AI and ask it to analyze the differences between the options you supplied. While its response can’t replace your own review of terms, it offers a second set of eyes that might help you spot important details. This extra analysis may help you locate the most favorable terms available to you today.
Let’s say you successfully get approved for that loan. Eventually, you’ll have to pay it back. ChatGPT can help you calculate how much interest you stand to earn or avoid depending on how quickly you repay what you need.
Again, you’ll have to input the details of your loan, including how interest is applied to your balance, before you can ask it to calculate anything. But once it understands the parameters, you can ask what will happen if you increase the size or frequency of your payments.
Financial experts are on the constant lookout for technologies that offer value to the economic domain. ChatGPT is one of them. Let’s figure out the perks of using this technology for financial analysis:
Industry experts predict that ChatGPT plays a pivotal role when it comes to communicating complicated insights. Most of them are derived from crucial analyses like trends, spending, and gap analysis. Technological advancements can summarize these insights into simple English so as to offer a customized message for every customer.
Administering auto loans, personal loans, and mortgages include a stringent underwriting process along with regulatory needs. Some industrial experts believe that ChatGPT can help in this process when there has been an incorporation of domain-specific data into model training.
ChatGPT can complement conventional chatbot approaches with advanced language processing and semantic conversational capabilities. This ultimately helps in better performance, makes multitasking easier, and helps in consumer decision-making.
The ability of ChatGPT to analyze broad data amounts to help in identifying patterns, correlations, and trends in risk assessment areas. Such capability can assist financial institutions, which ultimately helps in better assessments of risk.
Now, let us understand the challenges of using ChatGPT for making financial decisions.
Financial investor Van De Venn points out how constant use of ChatGPT can impact the requirements of Duty-Of-Care. In this approach, it is acceptable to ask simple questions about first-line support, although offering financial advice might be typically limited.
Provided ChatGPT’s propensity to navigate fake information, proficient investors might vet all use cases and results to ensure accuracy. Enterprises must focus on augmenting AI instead of end-to-end authentication. This might combine critical thinking capabilities and employee benefits of tools.
The existing crop of technologies like ChatGPT lacks nuanced comprehension of a consumer’s context. Further, it might be necessary to train on broad amounts of banking documents as well as data. All of these are necessary for models to comprehend the terminology and language specific to the economic domain.
No, and anyone who tells you otherwise is lying.
Remember, this AI only has access to data from 2021. A lot has happened in the financial world since then, so it’s missing key contextual information about today. As a result, it cannot tell you what loan to borrow or what stock to invest.
It’s also very good at sounding like an authority while sharing “incomplete, biased, partly wrong or, occasionally, nonsense,” according to The Washington Post.
You can read how experts in a variety of subjects who, after asking ChatGPT to answer specific questions, received bogus answers. Unfortunately, to the untrained eye, the AI tool sounds good, but it lacks the substance and experience of a real-life human financial advisor.
Knowing its limitations is how you can leverage this tool properly. It’s best used as a generative tool that organizes pre-existing information you feed it.