You and AI: How Artificial Intelligence can impact personal finance decisions

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Big data has always had a place in financial systems, now new technology allows machines to explain what the numbers mean better than ever before. But how much…

Big data has always had a place in financial systems, now new technology allows machines to explain what the numbers mean better than ever before. But how much trust would you have in a machine making a recommendation with your money?A new revolution is underway in the financial space, powered by artificial intelligence. For the last few decades, computers have already changed how people save, invest and manage money.

Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyOne attempt to marry complex data to polished language can be found at Morningstar, the Chicago-based investment rating and research giant. A group at Morningstar built an AI-powered chatbot, named Mo. Released earlier this year to clients, Mo’s specialty is general financial queries.

Experts like Hammond say a crucial part of AI being able to help, and not harm, humanity is ensuring the data fed into these machines is correct and ethically sound. In other words, a smooth explanation of flawed or biased data is a problem – no matter how slick or coherent the presentation. Hammond said with the right processes in place, we can learn to trust machines the same ways we learn to trust humans: through time, experience or logical explanation.

For those perhaps with a larger risk appetite, Spanish stock-picking company Danelfin provides users a score from one to ten on the likelihood a stock or exchange traded fund will beat the market in three months time.

 

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