Several times per year, finance and technology influencers gather for a conference to show off and discuss new developments coming down the finance technology, or FinTech, pipelines. At the recent LendIt USA conference in New York, leaders from IBMâ€™s Watson team presented some upcoming uses of artificial intelligence, or AI, for personal finance topics.
Thereâ€™s no doubt AI will find itâ€™s way into the insurance industry and help you buy life insurance but can AI ever replace the knowledge and empathy of a human being?
More Clarity Is Coming to Personal Finance
Personal finance is not taught at most schools, so it is up to people to figure things out for themselves if they didnâ€™t have a parent teach them important core lessons in personal finance. In the IBM Watson demo, the LendIt audience was able to witness a computer respond to questions about insurance, credit cards, and banking, demystifying some of the common questions we have about our own finances.
In the demo, one presenter from the team asked an audio and text-based assistant for help picking the right credit card. The system responded with a handful of questions and even showed empathy while trying to gather the information to help pick the best card possible.
Credit cards are just the beginning! In the complicated world of finance, knowing how to make the best decisions can be a challenge. With emerging technologies, like those developed by IBM, making decisions will be as simple as answering a few questions.
Text and Audio Assistants
Programs like Quicken and Mint were the pioneers of helping us manage and understand our personal finance data, but new developments have taken managing your finances to a whole new level. For example, Penny is a virtual assistant that lives inside of a smartphone app and can help you understand your spending and transactions. Olivia, Cleo, and Abe are other intelligent assistants you can use to manage your money.
After a few months using Penny, some very useful features emerged that you can already interact with for free today. You can review recent transactions, spending trends by category, and weekly summaries.
While the skills of each bot are limited and slightly vary, machine learning is driving artificial intelligence growth that is going to completely revolutionize how we interact with our financial data and finance companies.
The most exciting part of the presentation was a video assistant. In this demonstration, a very realistic, lifelike â€œwomanâ€ was on screen helping deal with a common personal finance scenario, choosing a credit card.
The bot could understand voice tones, respond verbally to verbal commands, and even made a joke saying that sheâ€™s â€œfrom a place called the Internet.â€ This empathetic bot was able to help answer questions and focus on priorities like the best ARP and rewards for a personal credit card.
The insurance demo was similar in nature to the credit card demo, but today thereâ€™s no bot or AI that can replace a real person. But, itâ€™s probably fair to say that you can expect to ask a computer for help with your life insurance needs in the not too distant future.
While bots and artificial intelligence show great promise, you donâ€™t have to wait to get help building your financial knowledge. Between blogs, news media, podcasts and online videos, you can find out anything you need about personal finance or life insurance with the click of a mouse.
Artificial Intelligence and Life Insurance
One of the key pillars of your personal finance is life insurance. Life insurance protects your loved ones against a loss of your income. While it is never fun to talk about the unthinkable, thereâ€™s peace of mind knowing that your family is protected.
It will take many years before AI can replace the knowledge, compassion and empathy of a real insurance agent. Â While no machine exists today to help you get the best policy at the best rate, you do have access to immediate help. SelectQuoteâ€™s life insurance experts have been providing life insurance guidance to families since 1985 and can quickly provide you a quote from a handful of top-rated carriers. Speak to a real person today!