With the enhancement of technology the is more to spend and then actually maintain the budget. There are many institutes trying to figure out how to maintain the budget using artificial intelligence. With AI in budgeting and managing personal finance will help in making life better as consumers and also allow them to track their spending and stick to the budget set.
Why is AI required in personal finance?
With new technologies getting evolved AI for personal finance will be a major help in getting people out from the financial trap . In current situation, financial health is very important and a lot difficult to maintain. With growing technologies it is a lot easier to spend the money as there are various templation. E.g Food app. Earlier consumer had to order food, one needs to go to the restaurant or call the same, but with the food delivery app and laziness of users the food is just a click away. I personally spent around Rs 50,000 last year on a food delivery app.
Also there is so much content around you about how to spend, how to save and every article has a different approach which makes the user frustrated and confused on what to do.
As per Artashes Vardanian
Our world is distracting and the budgeting app doesn’t work.
There are tons of applications for budgeting but most of them are just an overview of your spending . There are no apps that tell you or suggest you how to maintain the budget. It is rightly said ‘In today’s distracted world our brains are influenced to spend more and more’. Because of this spending habit it is very difficult to track our spending which in turn impact our financial well being .
It is well said “ Lack of money is not the problem, the problem is lack of financial discipline.
The future of AI in Budgeting
- Understanding the transaction: AI will help in making sense of an individual transaction. This is the most important acceptance in which 80 % of people fail. “ It’s not the money , it’s what you do with it that counts.
- Super fast data processing : In the real world machines have greater speed in carrying out or interpreting the data. It will be able to outperform the human brain. AI will be very important in studying various variables of economics and financial flow
- Potential to improve : With continuous upgrades AI systems have a very great opportunity to improve in the period of time. With the upgrades it will help in better managing the financial health of an individual.