AI may assist in banking but not replace human financial advisers

The first ever chatbot was created in 1966 by MIT computer scientist Joseph Weizenbaum.

Artificial intelligence in financial services is nothing new, AI-powered chatbots have been incorporated into websites to assist with customer service since 2008. AI uses machine learning algorithms that can analyse large amounts of data and detect patterns and anomalies, enabling financial organisations to detect and address potential risks before they become a problem.

AI can also be used in portfolio management, fraud detection and credit scoring.

In banking, it is used to send notifications for transactional updates, payment reminders and product offerings. AI is helping financial institutions become more efficient, customer-centric and profitable.

There is currently a race between Apple, Google, Amazon and Meta as to who will have the best AI assistant.

However, the race is being led by Open AI developed and Microsoft backed, Chat GPT, which does not source answers from the internet in real time but scours its 570GB of stored books, articles, journals and other texts to formulate an appropriate response.

However, the data used by Chat GPT is limited to 2021, so any questions pertaining to post 2021 events are limited. It does not provide sources and may provide harmful instructions or biased content.

The questions directed to Chat GPT need to be specific or responses may be too generalised. Servers may become overloaded and unable to handle requests. To gain access to the full Chat GPT experience you will have to pay R350 monthly.

If you are inclined to use this piece of AI for financial advice, be aware that it cannot fully comprehend the intricacies of human language and conversation. AI should be used as a tool to supplement your own judgment but not as a replacement.

For a personal touch to your financial needs contact an Edge adviser today on 041-581-2509 or