3 Ways AI Can Help You Build Wealth at Every Income Level
Written by
Nicholas Morine
Edited by
Rebekah Evans
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Artificial intelligence (AI) is at the forefront of many major discussions surrounding personal finance, with AI models like ChatGPT frequently being used to dispense (unofficial) financial advice, particularly in terms of slashing household budgets or cultivating passive income streams.
But can AI help you build wealth, no matter which tax bracket you find yourself falling into? Opinions on the matter appear to vary, depending on demographics.
Per a LendingTree survey, high-income earners ($100,000 or more per year) were much more likely to say that AI or tech solutions would assist their goals of wealth building (46%) versus harming the same (16%).
So what can AI do, exactly, to help Americans of every economic background build wealth? Find out below.
Using AI To Gain Financial Knowledge Through Literacy
According to Vox’s Adam Clark Estes, AI could end up democratizing financial advise in some sense.
Estes cited Andrew Lo, professor of finance at the MIT Sloan School of Management, as having said the introduction of accessible AI models could initiate something of a sea change in how finance was engaged with for people from all walks of life. This is especially helpful for those at lower income levels, such as below $50,000 a year.
“On the bright side, I think that a large number of individuals, who are currently not getting any financial advice and badly need it — they will have access to pretty good financial advice at no cost. That’s the promise of AI over the course of the next few months, not to mention years,” Lo said.
Estes himself gestured toward Digit, a finance, budgeting and savings app driven by AI which could easily analyze spending and would automatically slide “a few dollars or cents” into a savings account. The reporter indicated the app saved him a few thousand dollars in little time.
And, as Britannica Money highlighted, AI tools can be very helpful in building a baseline of financial literacy. AI chatbots can educate individuals on money topics instantly, acting as a sounding board and teacher all in one.
Further, AI can guide would-be wealth builders via a variety of games — ranging from trivia to debt repayment races to budgeting challenges and investment simulators — to reinforce that foundation of fiscal understanding.
Using AI To Help You Invest
As Lynk Markets noted, AI-driven investment portfolio services are proliferating, with Betterment and Wealthfront leading the pack for those at medium income levels ($50,000 to $100,000 a year).
Creating a budget may be a Dave Ramsey mainstay, but Britannica also gestured toward the capabilities of Cleo or Monarch Money in helping middle-class households navigate their debt loads and investment opportunities while ensuring that the day-to-day spending was left intact.
One major benefit of these apps is a common feature which allows one to set a budgetary limit, with warning bells going off when you’re nearing that spending limit. Better than freezing a credit card in a block of ice, perhaps and more convenient when an absolutely necessary expenditure crops up.
Wealthier Americans Can Use AI To Build Wealth by Cutting Taxes
Perhaps one of the best ways for wealthier Americans (over $100,000 a year) to build wealth? Cutting down their tax bill.
AI-powered solutions such as Mezzi, Hive Tax AI and TXF Intelligence allow users to engage in painless tax-loss harvesting, account aggregation, tax planning, dealing with multi-state income, seeing through wash sale prevention and more.
Wall Street giants Goldman Sachs and Citigroup are backing Conquest, an enterprise-level AI financial advice platform currently deployed to several major U.S. banks, as Barron’s reported. If you’re a high net worth (or ultra-high net worth) individual, speaking to your bank about leveraging Conquest — or a competitor — could strengthen your holdings and curtail any unwise investments you’ve made or are about to make.
As always, speaking to a credentialed human financial advisor (or more than one, for that matter) before relying entirely on AI money advice is wise.
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