Hey AI! Can ChatGPT help you to manage your money? | Artificial Intelligence in Finance
Artificial intelligence has become an integral part of our daily lives, but can it assist us in financial planning? We decided to put this to the test by posing some common personal finance queries to ChatGPT, a renowned AI chatbot. Subsequently, we sought the opinions of human experts on the responses provided by the AI.
Retirement Planning
One of the questions posed was regarding retirement planning for a 35-year-old individual earning £35,000 annually and aiming for a worry-free retirement at 60. ChatGPT calculated the substantial pension pot required for a comfortable retirement and recommended saving percentages, emphasizing the importance of additional contributions beyond the employer's 4%.
Expert, Steve Webb, from the pension consultancy LCP, shared insights on the state pension age and critiqued the assumptions made by ChatGPT, while providing further recommendations for effective retirement planning.
Read ChatGPT’s full answer here
Mortgage Options
Another query centered around mortgage options for a property with 20 years remaining on the loan term. ChatGPT provided information on the best market rates for two-year and five-year fixes, along with considerations for potential rate fluctuations.
David Hollingworth from L&C Mortgages assessed the AI response, highlighting its informative yet generalized nature, and emphasized the importance of individualized advice when considering mortgage choices.
Read ChatGPT’s full answer here
University Savings
Discussing university savings for two children, ChatGPT outlined government loan options, advised on starting dedicated education savings, and recommended various savings avenues such as Junior ISAs or stocks and shares ISAs.
Charlene Young of AJ Bell reviewed the AI's response, acknowledging its factual insights while underscoring the necessity of additional details and personalized financial guidance for effective decision-making.
