If you’re a fan of science fiction, you’ve known about artificial intelligence (AI) for many years.
Now artificial intelligence software is becoming more prevalent in personal finance management. New developments are making dreams of robots we can interact with reality.
Before you know it, a computer might even help you choose your next credit card!
What is artificial intelligence software?
Artificial intelligence software uses machine learning and neural computer networks to become smarter as it works. If you tell a computer something, it will remember it in the future. It also remembers decisions made by others and may take that into account when interacting with you.
Below is a clip from a live demonstration of AI from the 2017 LendIt USA conference in New York. The AI helps someone choose a credit card based on a few questions. The software – created by Soul Machine in conjunction with IBM Watson – includes realistic 3D video with a voice-activated interface.
AI is improving so rapidly that it may be able to help make some decisions for you. For example, say it looks at your spending habits, credit card balances, and other financial data. The computer can then figure out some of your priorities without any input from you.
AI will understand your existing credit
AI will soon be able to help you understand all aspects of your finances and use that information to make better decisions. The artificial intelligence software will even be able to recognize you.
In the video above, the AI asks for the user’s credit score. AI that has access to your personal finances, similar to successful financial management apps, draws from your credit and spending history. It will look at your credit score, credit cards, and a list of banks you use. This helps it determine what cards may be a good fit.
Whether you want a card with a low interest rate or rewards, the artificial intelligence software does the heavy lifting.
AI will know if you qualify
Today, getting a credit card requires an application. You won’t know until you hit “submit” if you will be approved. Even when you apply online, the bank may need extra time to review your information before making a decision.
While it is a long way off, AI systems may be able to give you an answer before you even apply.
The artificial intelligence can use your credit history to instantly pre-qualify you for a list of cards. Based on the result, it can show you a list of cards to choose from.
AI will keep getting smarter and better
Artificial intelligence software is already slowly making its way into our lives. Google Home and Amazon Echo owners know some of the benefits from interacting with their home assistants. This is just the beginning; artificial intelligence software is always learning and improving.
With machine learning, your relationship with your bank and credit card companies will become much more personalized. You can get a glimpse of what this will look like with some emerging personal finance AIs.
If you want to start with an AI right now, one of the best options is Penny. This app can’t help you choose a credit card just yet, but it can analyze and help you manage transactions on your existing credit cards.
The above demonstration of artificial intelligence software from IBM Watson is amazing, but there are some who have privacy concerns. Just like using an app like Mint.com, using artificial intelligence software requires giving the computer access to your financial information.
Digital assistants that exist today already concern privacy advocates, but implementing a full AI, as Google is planning to, opens up a pandora’s box of privacy questions.
Artificial intelligence software and personal finance are just getting started
We have finally reached a time when virtual reality, AI, machine learning, and neural network computers are a reality.
Today, signing up for a new credit card requires a good bit of research and time. That won’t be the case forever. Artificial intelligence software will soon help you pick your next credit card. It will also help you manage the rest of your financial life. There is no limit to the possibilities!
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||Rates (APR)||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|7.39% - 29.99%||$1,000 - $50,000|
|4.98% - 14.24%1||$5,000 - $100,000|
|8.00% - 25.00%||$5,000 - $35,000|
|4.99% - 16.24%2||$5,000 - $50,000||Visit Citizens|
|5.99% - 35.89%||$1,000 - $40,000||Visit LendingClub|
|5.25% - 14.24%||$2,000 - $50,000||Visit Earnest|