The emergence of the internet in the 1990s marked a turning point in how we interact with our money. Everyday actions, such as checking a bank account balance or making an instant transfer—now routine—were revolutionary at the time, because information about investments and personal finance was exclusively in the hands of experts, advisors, and brokers.
Today, we are experiencing a shift of similar magnitude: in an increasingly technology-driven world, Artificial Intelligence (AI) is revolutionizing how we manage our money by facilitating access to digital tools that allow us to optimize our finances more effectively and intelligently.
According to a survey by BMO Financial Group, more than a third of Americans (37%) use Artificial Intelligence to manage their personal finances. What once required hours of planning and advice can now be accomplished in just a few seconds, and from the comfort of home. However, the adoption of these technologies also raises questions about the balance between automation and financial knowledge.
According to the survey, the most common uses people give to this technology are to learn more about finances, create and update household budgets, identify new investment strategies, accumulate savings, and develop or improve personalized financial plans. However, the benefit of incorporating this technology also lies in the use given by financial experts, who, by delegating routine tasks to algorithms, can focus on developing more inclusive, client-centered solutions. This, in turn, generates direct benefits for each individual’s financial health, as professionals can offer more personalized and strategic advice, merging human intuition and experience with the advanced data analysis provided by technology.
However, the fact that AI simplifies money management does not mean that learning the basics of finance is no longer necessary. In fact, a study by Junior Achievements revealed that 70% of young people consider financial and economic education as the most important subject they should receive in school. Understanding terms such as budget, savings, credit, and investment remains indispensable for acquiring a solid foundation that protects us and allows us to maintain control of our finances instead of delegating it entirely to algorithms. These skills are essential for developing good financial health, that is, the ability to efficiently and sustainably manage our resources over time.
Here lies the virtuous cycle between Artificial Intelligence and financial education: both feed into each other, creating a synergistic relationship in which, to achieve efficient use, one cannot thrive without the other. Promoting access to AI-based financial technologies demands that people understand the basic principles of money management. But, in turn, AI provides the financial education necessary for users to learn to efficiently manage their resources and achieve positive and sustainable financial health.
In many countries in Latin America, where economies are more unstable and opportunities more limited, taking advantage of this virtuous cycle represents a unique opportunity to drive social progress and democratize access to financial information. Today, technological innovation plays a central role, and it is precisely information that is at the heart of AI. Therefore, if used properly, financial education can become a transformative tool, with the power to build a more inclusive and economically fair society for everyone.
About the author:
Sofía Gancedo, Bachelor in Business Administration from the Universidad de San Andrés, Master in Economics from Eseade, and Co-Founder of Bricksave.
