Some of the key impacts AI is having on our everyday finances

As artificial intelligence continues to evolve, its uses and applications grow even wider. Many people are already using tools like OpenAI’s ChatGPT, Google's Bard or Bing Chat to help them write emails, research new subjects and brainstorm business names.

As artificial intelligence continues to evolve, its uses and applications grow even wider. Many people are already using tools like OpenAI’s ChatGPT, Google's Bard or Bing Chat to help them write emails, research new subjects and brainstorm business names.

While AI tools are excellent for administrative tasks, the underlying technology goes much deeper. A great example is how AI-assisted camera systems have been used to fight Canadian wildfires.

AI tools are also revolutionizing the financial system by providing deep insights and dynamic recommendations. Below, I’ll outline some of the key impacts that AI is having on our everyday finances.

Before today's sophisticated AI tools, the financial sector relied on complex algorithms to process information and make recommendations. These algorithms were used for a number of situations, such as:

These early financial algorithms were rule-based and operated under specific, predetermined criteria. For instance, if an individual’s credit score, income and debt were within a certain threshold, they might be approved for a loan.

While useful, the problem was that these algorithms were static, mostly operating in black-and-white scenarios.

Today’s modern AI financial tools are far removed from traditional algorithms. Instead of relying on a fixed set of rules, AI systems are capable of learning from vast amounts of data, allowing them to refine their strategies over time.