CBS News business analyst Jill Slesinger explains that while AI can be a useful tool for financial education, budgeting, and evaluating advice, users should avoid sharing sensitive personal information due to privacy and security risks. She emphasizes using AI as a supplement to professional advice, verifying information from reputable sources, and critically assessing financial decisions to become more informed and cautious.
In this segment of Money Watch, CBS News business analyst Jill Slesinger discusses the pros and cons of using artificial intelligence (AI) to help manage personal finances. While AI technology is becoming increasingly prevalent and can assist with budgeting and financial education, experts caution users to be wary of sharing sensitive personal information with AI chatbots. Jill emphasizes that financial data such as bank statements, credit card details, investment accounts, and tax returns should never be uploaded or shared with these tools, as they are not regulated like traditional financial institutions, posing privacy and security risks.
Jill highlights that AI can be a valuable educational resource, especially for answering straightforward financial questions. For example, users can inquire about the differences between various retirement accounts like Roth and traditional IRAs or understand tax deductions. AI can also help users analyze their spending habits by categorizing expenses and creating spreadsheets, making complex financial concepts more tangible and easier to grasp.
One practical tip Jill offers is to use AI to critically evaluate financial advice received from human advisors. By asking AI what could potentially go wrong with a particular investment or financial product, users can gain a better understanding of risks and formulate important follow-up questions to ask their advisors. This approach helps individuals become more informed and cautious when navigating complicated financial decisions.
Jill also advises users to be discerning about the sources AI cites when providing information. She recommends relying on reputable and authoritative websites, such as government sites like studentaid.gov or the IRS website, rather than unverified blogs or informal sources. This ensures that the financial guidance received is accurate and trustworthy.
In conclusion, while AI can be a helpful tool for financial education and initial budgeting steps, users must exercise caution regarding privacy and the reliability of information. Jill encourages people to use AI as a supplement to, rather than a replacement for, professional financial advice. For more insights and tips, viewers are invited to listen to Jill’s podcast, Money Moves with Jill Slesinger, which releases new episodes twice a week.