Your Money and AI: Artificial Intelligence in Finance

Key takeaways:

• AI is already deeply embedded in people’s everyday lives, shaping how they shop, budget, invest and spot financial opportunities.
• Generative AI tools can help with budgeting, goal setting and financial education, but they shouldn’t replace professional advice or trusted banking resources.
• The smartest way to use AI is as a planning and comparison tool, not as a substitute for human judgment.

Gone are the days when financial guidance only came from spreadsheets, search engines and long calls with a financial professional. Today, many people are turning to AI financial planning tools and large language models (LLMs) like ChatGPT, Gemini and Claude to compare products, build budgets, look up investing terms and find help with everyday money decisions.

According to 2025 data from Intuit Credit Karma, financial advice ranks as the second most common use of generative AI (after health and wellness). At the same time, AI-powered fraud and impersonation scams are becoming more sophisticated and more expensive for consumers every year.

The key to using AI in finance is knowing when these tools are genuinely helpful and when human judgment still matters most.

How AI affects money management

Even if you don’t use AI directly, AI money management tools may still influence the way you shop. Certain AI-powered systems can save time and simplify decision-making, but they can also quietly shape your spending habits.

It helps you shop and plan

For many people, AI is becoming part of the shopping process. They use tools like ChatGPT and Gemini to compare products, summarize reviews, find lower-cost alternatives and identify the best value option within their budget. But remember that AI recommendations are shaped solely by the information available online. So "best" doesn’t always mean "best for you."

It shapes recommendations and pricing

Did you know that two people shopping online for the same item might see two different prices based on factors like browsing history, device type, location or previous purchasing behavior? This is due to a phenomenon called "surveillance pricing," where companies use your personal information to estimate what you may be willing to pay for a product.

While personalized recommendations and targeted advertising have existed for years, newer AI systems can process enormous amounts of behavioral data faster and more precisely than older algorithms. That can affect everything from the products shown in your social feeds to the email promotions you receive.

A few smart habits can help reduce the effects of AI manipulation and encourage better spending decisions, such as:

• Browse in a private window when researching big purchases to avoid tracking-based price hikes.
• Ask AI tools to explain both the pros and cons of a product recommendation so you can get a more balanced view.
• Cross-check major purchases with multiple sources instead of relying on a single AI-generated summary.
• Pause before making impulse purchases driven by urgency tactics like limited-time recommendations or personalized offers.
• Review app permissions regularly to limit unnecessary data collection.

Using AI budgeting tools and AI financial planning tools

One of the most practical uses for generative AI is financial organization. People are increasingly using AI chatbots to create starter budgets, estimate savings timelines, analyze subscriptions, compare financial scenarios and brainstorm strategies for paying down debt or reaching long-term goals.

Some AI platforms are even beginning to offer optional account-linking features that allow users to view spending patterns, recurring expenses and financial goals in one place.

Potential benefits of using AI for budgeting

• Helps you break through that "I don’t know where to start" paralysis.
• Provides quick explanations of complicated financial concepts.
• Offers judgement-free assistance.
• Generates what-if scenarios for savings or debt payoff goals.
• Has 24/7 access to financial explanations and planning help.

"There is potential for AI budgeting tools to genuinely help people make ends meet and stay on track through financial hardships," says Jennifer Tescher, founder and CEO of the Financial Health Network. "These tools can track spending, flag upcoming shortfalls and automate small decisions."

Potential drawbacks to keep in mind

• Is only as good as the inputs you provide.
• May give you overly general or outdated guidance.
• Doesn’t know your full financial picture or account for nuance (like tax situations, regional cost differences or your emotional relationship with money).

"AI doesn’t know your values," Tescher adds. "It has your data and the patterns it learned from training data, which may not reflect your circumstances, your community or your priorities."

Whether you're using AI in banking for budgeting or financial planning, use these tools responsibly by following these tips:

• Avoid sharing sensitive information like account numbers, Social Security numbers or actual financial statements.
• Treat AI-generated budgets as starting points, not final financial plans.
• Verify recommendations using trusted banking resources (like a savings or budgeting calculator) or licensed professionals when necessary.

Budgeting prompts to use with AI

Thoughtful prompts tend to produce more helpful financial guidance. Instead of vague prompts like "Help me with money," try giving the tool a clear goal or scenario to work through. For example:

• Create a monthly budget for someone earning $X annually after taxes with $X in rent, a $X car payment and $X in debt.
• How much should I be saving each month if I want to buy a $400,000 home in three years?
• Explain the 50/30/20 budget rule and help me adjust it for my situation.
• Based on this monthly spending breakdown, where could I realistically cut back by 10%?

"People can get a lot of quick advice from AI tools but need to keep in close touch with their human advisors," says Matt Carmichael, senior vice president of consumer trends at Ipsos, a multinational market research and consulting firm. "Financial decisions are complicated both by the market and by the circumstances of the individual. An LLM won’t know all of that nuance."

AI and investing: What it can and can’t do

AI is rapidly changing the way investors consume financial information. Many brokerage platforms and financial apps now use AI to summarize market news, explain earnings reports and generate personalized insights for users.

This can be especially useful for beginner investors. AI tools are often good at translating financial concepts—like exchange-traded funds, diversification or compound growth—into simple language.

But experts caution against putting too much trust in AI-generated investing advice. AI systems sound confident even when they are wrong, and, just like a human, no chatbot can accurately predict market movements or guarantee returns.

"The danger of AI isn’t just that it can give you bad information; it’s that it also gives you a narrow set of responses," says Tescher. "AI answers tend to feel authoritative. They are presented with confidence, they are obsequious and they’re even backed by data. People tend to accept them without interrogating the underlying assumptions."

For those reasons, consider using AI as an educational tool rather than a replacement for a thoughtful investment strategy. It can help you learn, compare options and organize information, but major financial decisions should still be grounded in your risk tolerance and long-term goals, and supported by trusted sources.

When using AI for investing research or financial education, keep these best practices in mind:

• Use AI to explain unfamiliar terms or summarize research—not to chase "hot tips."
• Focus on long-term investing goals rather than short-term AI predictions.
• Be skeptical of any platform promising guaranteed or unusually high returns.
• Validate investment information with reputable financial institutions or government resources.

"Using a human-in-the-loop approach isn’t just about double-checking the math," Tescher adds. "It’s about checking the goal. Make sure the tool is working toward an outcome you actually care about, not just the one that’s easiest to measure."

AI-powered scams and AI fraud prevention

A 2026 Consumer Federation of America report estimates that online scams could now be costing Americans roughly $119 billion annually, dramatically higher than official fraud totals reported just a few years earlier. Today’s AI-generated messages are largely devoid of all the old tells: the typos, the generic greetings, the obvious formatting problems. Messages can mirror your bank’s exact tone. Investment scammers now build fake trading platforms that show convincing returns for months before vanishing. A brand can deploy fake social profiles and websites with believable photos and videos.

Here are a few ways to protect yourself:

• Treat urgency as a warning sign. Scammers want people to panic and act quickly before verifying information.
• Call trusted numbers directly. If you receive a suspicious message, contact your bank using the number on the back of your card, not the number provided in the message.
• Use account alerts and multifactor authentication. These tools can help prevent fraud and detect suspicious activity earlier.
• Monitor your accounts regularly. Tools like Fifth Third’s SmartShield^® dashboard¹ can help you track account activity, manage alerts and spot suspicious transactions quickly.
• Verify requests through a second channel. If a message appears to come from a relative, employer or bank, confirm it independently before sending money or information.

For a deeper look at specific scam types like phishing, voice cloning and malware, check out Fifth Third’s guide on top AI scams.

How to use AI in personal finance to your advantage

Whether you actively seek it out or not, AI is becoming a part of everyday financial life. Used wisely, it can help you feel more informed and prepared before making financial decisions.

But it works best when paired with critical thinking and a healthy dose of skepticism.

• Be intentional, not passive. Understand how recommendations are generated instead of automatically trusting them.
• Protect your personal information. Audit app permissions and limit unnecessary data sharing with third-party platforms.
• Slow down major financial decisions. AI thrives on speed and automation, but major money decisions still deserve human reflection.
• Verify important information. Cross-check urgent requests, investing claims and financial advice using trusted sources.
• Focus on your actual goals. A recommendation is only helpful if it aligns with what matters most to you financially.

AI can be a valuable tool for learning, organizing and planning, but it should not replace trusted financial relationships or thoughtful decision-making. And the people most likely to benefit from AI won’t necessarily be the ones using it the most. They’ll be the ones who stay curious, ask better questions and know when to let technology assist... not take the wheel.

What to do next:

• Discover 10 cybersecurity tips to help keep you and your family safer online.
• Check out these 7 practical ways to start saving money today (no AI required).
• Learn whether direct deposit makes more sense for your checking account, savings account—or both.