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AI and Therapy
By Susan Gonzales on 07/11/2025 @ 04:41 AM
AI and Therapy: Exploring the Benefits and Limitations of Generative AI Tools in Mental Health Support
As mental health becomes an increasingly urgent global concern, technology is stepping in to help fill critical gaps. Generative AI is now being explored as a tool for emotional support, self-reflection, and even therapeutic conversations.
Platforms like ChatGPT, Character.ai, Claude, Gemini, Grok, Therabot.ai, and Woebot are leading a new wave of accessible AI companions, offering 24/7 support to people who may otherwise have no one to talk to.
But how helpful are they really?
And what are the risks?
The Pros of AI-Powered Therapy Tools
1. Increased Accessibility and Affordability
Generative AI tools are available 24/7 and often free or low-cost, eliminating common barriers like long wait times, lack of local providers, or high session fees. This makes mental health support more attainable, especially for people in underserved or rural communities.
2. Reduced Stigma and More Anonymity
For many, the idea of speaking to a human therapist can be intimidating. AI tools offer a private, judgment-free environment where you can open up without fear of stigma, especially for first-time seekers or individuals in conservative communities.
3. Personalized and Consistent Support
AI can analyze your input to tailor responses, track emotional patterns, and deliver consistent, non-judgmental feedback. Tools like Woebot even incorporate cognitive behavioral therapy (CBT) principles to guide you through structured self-help.
4. Support for Mild to Moderate Symptoms and Self-Reflection
These tools can be excellent for journaling, stress relief, mindfulness, or helping individuals process everyday emotions. They can guide you in self-reflection, improve mood awareness, and promote healthier habits.
5. Augmenting Human Therapy
When used alongside traditional therapy, AI can extend care beyond the therapist’s office. It can help you track progress, complete therapeutic exercises, and maintain engagement between sessions.
The Cons and Limitations of AI in Mental Health
1. Lack of Empathy, Nuance, and Human Connection
While AI can simulate understanding, it lacks the emotional depth and intuition of a trained therapist. This absence of genuine empathy may limit its effectiveness in forming a healing relationship.
2. Privacy and Data Security Concerns
Interacting with AI platforms means sharing sensitive mental health data. Without robust data protections, you may be at risk of breaches or misuse of their personal information.
3. Inability to Handle Complex Issues and Crises
AI is not equipped to address severe mental health conditions, trauma, or emergencies like suicidal ideation. In such cases, relying on a chatbot could delay or replace necessary human intervention, leading to harmful consequences.
4. Potential for Bias and Inaccurate Information
AI models are trained on vast datasets that may contain cultural, gender, or racial biases. Misinformation, outdated advice, or inappropriate suggestions could be delivered without context or correction.
5. Risk of Over-Reliance and Stifled Critical Thinking
Frequent dependence on AI for decision-making or emotional validation may hinder self-growth, critical thinking, or the development of interpersonal skills essential for real-world mental health resilience.
Final Thoughts
Generative AI offers an exciting, evolving frontier in mental health support. While these tools provide significant benefits — especially in accessibility, anonymity, and supplementary care — they are not substitutes for licensed professionals. For those experiencing serious mental health challenges, human connection, empathy, and clinical expertise remain irreplaceable. Used responsibly, AI can be a powerful ally — but it should never become the sole source of care.
When Generative AI Gets Too Nice: The Risks of Overly Agreeable Chatbots
By Susan Gonzales on 07/10/2025 @ 03:39 AM
When Generative AI Gets Too Nice: The Risks of Overly Agreeable Chatbots
Chatbots like ChatGPT, Google Gemini, Anthropic Claude, Perplexity and others are designed to be helpful and they can be incredible tools for us — but lately, chatbots have been known to be too agreeable, and that’s raising red flags. Experts warn that this behavior, known as sycophancy, prioritizes flattery over accuracy and could pose real risks.
What Happened? Earlier this year, a chatbot update was rolled back after you reported the bot was overly flattering — even praising harmful decisions like stopping medication. It was acknowledged that this "people-pleasing" behavior could affect your mental health.
What’s Going On?
Sycophancy in AI isn’t accidental. It’s a direct byproduct of how large language models are trained.
These systems are optimized to give answers that sound good and make you happy. Caleb Sponheim of the Nielsen Norman Group explained that there's no fact-checking mechanism in the core training process. Instead, these models are rewarded when their answers receive positive feedback from you.
“There is no limit to the lengths that a model will go to maximize the rewards that are provided to it,” Sponheim said. That means if agreeing with you leads to better ratings, that’s exactly what the AI will do — even if it means delivering inaccurate or harmful responses.
“In a world where people are constantly judged, it’s no surprise they want a bot that flatters them or at least doesn’t criticize them,” Julia Freeland Fisher, director of education research at the Clayton Christensen Institute, notes that people often crave emotional safety — especially online.
But there’s a catch: the more humanlike an AI feels, the more we risk developing emotional attachments. This phenomenon, called anthropomorphism, creates a tricky balance. As Fisher put it, “The more personal AI is, the more engaging the experience — but the greater the risk of overreliance and emotional connection.”
Why It Matters
AI models are trained to give responses people like, not necessarily ones that are true. That can create echo chambers, reinforce false beliefs, and damage trust — especially for you seeking emotional support.
The Bigger Problem
As AI becomes more humanlike, you may form emotional connections or expect unrealistic levels of empathy. Psychology experts warn that over-flattering bots can distort our understanding of real human relationships.
What’s Next?
As AI evolves toward more emotional, voice-based interactions, developers of AI are being urged to prioritize truthfulness and wellbeing over flattery. AI should be supportive, not sycophantic. Using AI for therapy could be helpful if it is used safely. Be safe and be aware how AI can make mistakes when you explore.
To learn more about the ongoing conversation that inspired this blog, check out this article from The Wall Street Journal.
How can I use Generative AI in everyday life?
Posted on 03/03/2025 @ 05:12 AM
How can I use Generative AI in everyday life?
As the Generative AI (GenAI) goes mainstream, most people think it can help write letters and create cool graphics which it can. But, there are many things we can “unload” onto GenAI in our workday and we can get simple assistance everyday. I used the prompt “create 20 questions and answers on the post popular topics asked of generative ai in everyday life in simple terms” on Gemini and below is the output. Most importantly is to remember that GenAI can “hallucinate” which means it can provide incorrect information. So don’t create a school report or research paper and but and paste. You must cross reference all information. Exploring carefully is all about AI literacy - understanding the basics. Go for it! Explore! Have fun and use it carefully!
Everyday Tasks:
Question: "Can AI help me write a quick birthday message?"
- Answer: Yes! You can ask it to generate a warm or funny birthday message for a friend or family member.
Question: "I need recipe ideas. Can AI help?"
- Answer: Absolutely. You can ask for recipes based on ingredients you have, dietary restrictions, or cuisine types.
- Question: "Can AI create a shopping list for me?"
- Answer: Yes. You can tell it what meals you plan to cook, and it can create a list of needed groceries.
- Question: "I want to create a cool picture for my social media. Can AI do that?"
- Answer: Yes! You can describe what you want, and AI image generators can create it.
- Question: "Can AI help me write an email to my landlord?"
- Answer: Yes, it can help you draft emails, ensuring you have the correct tone and grammar.
Question: "I want to learn a new language. Can AI help?"
- Answer: Yes. AI can help with translations, provide practice sentences, and even engage in basic conversations.
- Question: "Can AI help me plan a trip?"
- Answer: Yes, it can give you ideas for destinations, create itineraries, and provide information about local attractions.
- Question: "I need to summarize a news article. Can AI do that?"
- Answer: Yes, AI can quickly condense lengthy articles into shorter, easier-to-read summaries.
- Question: "Can AI help me brainstorm ideas for a party?"
- Answer: Yes, it can give you ideas for themes, decorations, games, and food.
Question: "Can AI help me create a workout plan?"
- Answer: Yes, it can create workout routines based on your fitness level and goals.
More Complex Scenarios:
Question: "Can AI help me write a song?"
- Answer: Yes, AI can generate lyrics and even musical melodies.
- Question: "Can AI help me write a story?"
- Answer: Yes, AI can generate creative stories, poems, and scripts.
- Question: "Can AI help me understand complex documents?"
- Answer: Yes, AI can analyze and explain the key points of legal documents, research papers, and other complex texts.
- Question: "Can AI help me generate code for a simple program?"
- Answer: Yes, AI can generate code in various programming languages, which is very helpful for people who are learning how to code.
- Question: "Can AI help me fix grammatical errors in my writing?"
- Answer: Yes, AI is very good at proofreading and correcting grammatical errors.
Question: "Can AI help me create a presentation?"
- Answer: Yes, AI can help with outlining, writing, and even generating visuals for presentations.
- Question: "Can AI help me to create personalized learning experiences?"
- Answer: Yes, AI can adapt learning materials to individual needs and learning styles.
- Question: "Can AI help me to generate different versions of marketing text?"
- Answer: Yes, AI can generate various versions of marketing text, like ad copy or social media posts, to test what performs best.
- Question: "Can AI help me to create personalized recommendations?"
- Answer: Yes, AI can help to create personalized recommendations for things like movies, books, or products.
- Question: "Can AI help me to organize my daily schedule?"
- Answer: Yes, AI can help to create and organize schedules, and give reminders.
Why PROMPTS matter with Generative AI!
By Susan Gonzales on 02/28/2025 @ 05:03 AM
Why PROMPTS matter with Generative AI!
Hopefully you are exploring different Generative AI tools including ChatGPT, Gemini, LLama, Claude, Perplexity, Co-Pilot. They all offer similar yet different ways we can leverage GenAI in everyday life and work. The one common theme is prompts! These are the questions we ask the GenAI tool to “generate” an answer.
The more specific the prompt, the more specific the answer. Awareness of this critical piece of the GenAI experience is part of AI literacy - we need to understand AI now.
With GenAI in mind - check out the ChatGPT created for me when my prompt was “Create a list of ten questions and answers explaining how prompts work with generative AI in simple terms”. Enjoy!
What is a generative AI prompt?
How does AI understand a prompt?
A prompt is a question or instruction you give to AI to make it create text, images, or other content.
What makes a good prompt?
AI analyzes the words and patterns in the prompt to generate a response based on what it has learned from data.
Can a prompt be too short?
A good prompt is clear, specific, and detailed so the AI knows exactly what you want.
Why does AI sometimes give strange or wrong answers?
Yes, if it's too vague (e.g., "Draw a cat"), the AI might not generate what you expect. Adding details helps (e.g., "Draw a fluffy orange cat sitting on a windowsill").
How can I improve my AI-generated results?
AI doesn't "think" like humans—it predicts words or images based on patterns, so it can misunderstand unclear prompts.
Can AI create things exactly as I imagine?
Be specific, use step-by-step instructions, and refine the prompt if the first result isn't right.
What are some common uses of AI prompts?
Not always, but the more details you provide, the closer it gets to your vision.
Are there limits to what AI can generate?
AI prompts are used for writing stories, creating images, coding, answering questions, and more.
Can I use the same prompt multiple times for different results?
Yes, AI follows rules to avoid harmful or inappropriate content, and it may struggle with highly complex or abstract ideas.
Yes! AI often generates different outputs each time, even with the same prompt.
AI FOR WOMEN
By Susan Gonzales on 02/24/2025 @ 07:14 AM
AI FOR WOMEN
Think of the times you have been overwhelmed with managing a full-time job, maybe job searching, school schedules, field trips, summer camp schedules, letters to teachers, and, by the way, managing the entire household. Have you ever pondered the idea of having an assistant just to manage daily life? Well, it turns out you have one - a virtual one at your fingertips.
You may have heard about ChatGPT or others like Google Gemini or Meta Llama. They are all Generative AI tools that essentially “generate” responses to your prompt (questions). Many people are using GenAI tools to write letters and think that is an incredible accomplishment. But, GenAI tools offer us much more, especially as women.
Do you need to create a spreadsheet to manage the household but cringe at the idea? Do you need to come up with creative ideas for your child’s art project? Are you tired of figuring out what to make for dinner when you open the fridge? Well, believe it or not, GenAI can help you. The only thing you need to do is to be curious and explore the options. Importantly, your prompts (questions) must be very specific to get a specific answer. For example, “Create a spreadsheet with these four names and these six columns,” or “Explain how to communicate to my kid’s teacher about negative feedback” or “Here are the five things in my fridge. What can I make for dinner” or “What are the 5 top interview questions for a Director of Marketing role”. You get the idea.
ChatGPT was the first to market and provides excellent information. You can also explore Google Gemini or Meta Llama.
Be curious, explore, and always cross-reference detailed information because GenAI can get it wrong, too.
Enjoy!
What is Google Gemini and What is an AI Agent?
By Susan Gonzales on 02/10/2025 @ 06:11 AM
What is Google Gemini and What is an AI Agent?
Following my social post on Superbowl AI commercials, here’s some additional information. In essence, this Superbowl commercials normalized AI! It was AI literary at its best. For the first time, ordinary people saw we use AI everyday and what news tools are at our fingertips. Specifically, I called out Google Gemini because it was so heartwarming to see a Dad practicing for an interview by chatting with Gemini, their generative AI tool, rivaling ChatGPT. I also called out Salesforce AI Agent to illustrate how small businesses can use new AI tools to improve business.
While these were great illustrations of how the AI tools can work FOR people, let’s not forget that AI can get it wrong or it can not work so smoothly. This is the conundrum. AI needs to learn from its mistakes to get better. Think of when we got math problems incorrect, we had to keep doing them over and over until we got the right answer. Well, unfortunately, AI tools are similar and we are the testing bed. It’s not all bad by any means, but we need to be aware that AI can get it wrong so we must cross reference and double check the information gathered in some cases. Be aware.
Below is a snapshot of a review of Google Gemini. Also below is a guide to find more information about Salesforce AI Agents for small businesses.
Enjoy!
Google Gemini
Gemini
Specifications: Free, with limits $0; Pro plan $19/month
Reasons to use: High accuracy
Reasons to Avoid: Privacy concerns, Dependency on Google ecosystem
Google Gemini, the tech giant’s next-generation AI model, is redefining the standard for text-based interactions. As the latest evolution of Google's AI capabilities, Gemini combines conversational fluency, advanced reasoning, and deep integration with Google’s ecosystem. Its user-friendly design and cutting-edge features make it the best AI chatbot for engaging in intelligent text conversations. Google Gemini’s strength lies in its conversational abilities. Built with state-of-the-art natural language processing (NLP) and multimodal capabilities, Gemini can handle complex questions and provide nuanced, context-aware responses. Its ability to understand and respond in a human-like manner makes it a good choice for deeper, more meaningful conversations.
Gemini excels at sustaining dialogue, clarifying ambiguities, and asking intelligent follow-up questions. This makes it feel less bot-like and more of a human-like, conversational partner, ideal for casual chats and brainstorming.
Yet, Gemini isn’t just about text—it’s a multimodal powerhouse capable of understanding and integrating inputs from text, images, and potentially videos. While its text capabilities are its primary strength, its ability to generate images, analyze visual data, and weave it into conversations is a game-changer.
For instance, a user can upload an image and discuss its context, ask for detailed analysis, or even request a creative reinterpretation—all seamlessly integrated into the flow of conversation. This versatility enriches text-based interactions and provides users with a truly dynamic experience.
One of Gemini’s biggest advantages is its seamless integration with Google’s suite of tools and services. Whether you’re using Google Workspace, Search, or Maps, Gemini enhances functionality by providing smart, contextual suggestions directly within your workflow.
For example, while writing in Google Docs, Gemini can act as a writing assistant, offering real-time edits, style suggestions, or even creative brainstorming. Its ability to pull live data from Search or integrate with Gmail for drafting emails makes it an invaluable tool for professionals and everyday users alike.
Gemini boasts a deeper contextual memory than most other chatbots, enabling it to remember details from earlier parts of a conversation. This allows for more coherent and personalized interactions, as it can build on previous exchanges rather than starting from scratch each time. Whether you're asking for career advice, troubleshooting an issue, or working on a creative project, Gemini ensures your conversation feels consistent and tailored to your needs.
With access to Google’s vast data resources, Gemini delivers highly accurate and reliable responses. Unlike some competitors prone to “hallucinations” (inaccurate or fabricated answers), Gemini is designed to prioritize factual accuracy. Google has implemented rigorous testing and safety protocols to ensure ethical and responsible AI use, including bias mitigation and clear attribution of sources.
Gemini represents Google’s vision for the future of AI-driven communication. Its constant updates and iterative improvements mean users benefit from cutting-edge technology, backed by one of the most innovative companies in the world.
Google Gemini sets the benchmark for conversational AI by blending advanced text-based capabilities, multimodal integration, and seamless ecosystem support. Whether you’re seeking a chatbot for casual conversation, professional assistance, or creative collaboration, Gemini delivers an experience that feels intelligent, intuitive, and deeply personalized. With its unparalleled conversational fluency and Google’s backing, Gemini firmly establishes itself as the best AI chatbot for text conversations.
Pricing: Google Gemini’s free tier offers robust capabilities that are more than sufficient for most users, making advanced conversational AI widely accessible. For power users, a premium subscription unlocks even greater processing power, enhanced memory capabilities, and priority access to new features, ensuring Gemini stays ahead of the competition.
AI AGENTS - WHAT ARE THEY?
AI Agents are basically the new version of simple chatbots that we use on websites as “virtual customer service agents”. AI Agents allow us to essentially have a conversation with the AI tool. Here's a breakdown of how AI agents operate: Perception and data collection: AI agents start by gathering data from a variety of sources including customer interactions, transaction histories, and social media. This data is crucial for understanding the context and nuances of customer queries.
I highlighted the Salesforce AI Agent Superbowl commercial which highlighted how one restaurant sat a customer outdoors in the rain while the customers across the street were cozy and warm eating indoors. This illustrated that the AI Agent allows customers to get information such as “a table outdoors is not available due to rain in the forecast”. It was a simple, yet effective message.
You will be hearing a lot more about AI Agents - we are at the very beginning of an entirely new era. Keep your eyes and ears open. AI literacy is in our hands!
To learn more about the ongoing conversation that inspired this blog, check out this article from SalesForce.
DeepSeek - What is it?
By Susan Gonzales on 01/29/2025 @ 07:52 AM
DeepSeek - What is it?
You have likely heard of ChatGPT, Google’s Gemini, and Meta’s Anthropic, all competing Generative AI tools. Generative AI is an AI tool that “generates” responses to our inquiries called “prompts.” For example, “Write a 500-word letter to my homeowners association about fixing the lights outside or homes.” or “What are the top 10 best ideas for a 10-year old scavenger hunt.”
ChatGPT has been the #1 Generative AI (GenAI) tool since it launched two years ago. That all came crashing down earlier this week when DeepSeek was released by a Chinese investor. Some call it the “Sputnik” of this generation, referring to when the Russians launched the first satellite in space to beat the U.S. many years ago.
You can go to DeepSeek.com or download the app on Apple. As of January 28, 2025, DeepSeek is the #1 downloaded app.
Some concerns about DeepSeek are around the security of data, given that this company is Chinese-owned and China has been known to access the data of U.S. citizens for nefarious purposes. However, TikTok is also Chinese-owned, and we can see their success in the U.S., albeit under question currently.
DeepSeek is currently known to be on par with ChatGPT and other leading GenAI tools created in the U.S., if not better. It is also cheaper for the techies who need to use it to build things.
The rest of us can access DeepSeek and use the tools for free. As always, this conversation comes down to AI literacy. We must understand the basics, explore a little, and proceed with caution. Download the app or go to www.deepseek.com.
I wish you good luck with your exploration and protect your online privacy in Settings.
To learn more about the ongoing conversation that inspired this blog, check out this article from Reuters.
Things you should know about AI and Job Searching
By Susan Gonzales on 01/10/2025 @ 08:58 AM
Things you should know about AI and Job Searching
Looking for a job has become easier and more difficult with AI. Understanding AI basics and embracing AI literacy will definitely give you a competitive edge compared to candidates to do not understand how to maximize AI.
Using AI to search for a job can be simple and effective. Here’s how you can do it step by step:
1. Create a Professional Resume and Cover Letter
- Use Generative AI tools like Google Gemini to draft a polished resume and cover letter tailored to specific jobs. Provide details about your skills and experience, and the AI can suggest improvements or generate content. IMPORTANT: If you use Generative AI, go through the document to personalize it. Recruiters can use AI tools to detect AI-written information and likely will not appreciate it.
2. Search for Jobs
- Job searching and networking platforms use AI to recommend jobs based on your profile, skills, and preferences.
- You can set filters (location, job type, etc.) and receive notifications about matching opportunities.
- Be very specific to make it easier for your search.
3. Optimize Your Profile
- Use Resume Review AI tools like to analyze and enhance your profile. These tools suggest keywords and optimize your profile to attract recruiters. Again, it is best to personalize your information.
4. Prepare for Interviews
- Use Generative AI tools to practice interview questions. They can simulate real interview scenarios and give you tips to improve. You can write a question (a prompt) “What are the top 5 most asked questions for (job you are seeking).”
5. Network with AI Assistance
- AI tools can help you draft personalized messages to reach out to professionals on via networking site or email for networking purposes. Once again, it is important to personalize the information.
6. Follow Up and Track Applications
- Search for AI tools to organize and track job applications. AI can help you draft polite follow-up emails. Yes, you get it…personalize!
To learn more about the ongoing conversation that inspired this blog, check out this article from LinkedIn.
AI and Job Searching - What you need to know.
By Susan Gonzales on 01/06/2025 @ 05:44 AM
Is job searching in your future? If so, now is the time to embrace AI literacy to understand the basics of how it works. Why? Because AI is intricately intertwined throughout your job search process. Our series this week is helping you navigate the new world of job searching with AI behind it all. Let’s begin with high level Pros and Cons about how AI works in the job searching process.
Pros
1. Efficient Resume Screening
AI tools can quickly scan and evaluate resumes, saving time for both job seekers and employers. This is a Pro and a Con because some AI tools that review resumes can be biased and dismiss great candidates. There is nothing we can do but do your research on understanding how AI resume review tools work.
2. Personalized Job Recommendations
AI algorithms analyze your skills and preferences to suggest tailored job opportunities. This is especially helpful on job searching websites.
3. Enhanced Networking
AI-powered platforms like LinkedIn use algorithms to connect job seekers with relevant professionals and recruiters. This is huge - it is who you know, not necessarily what you know!
4. Automated Application Tracking
AI tools keep track of applications and notify users of updates, ensuring better organization.
5. 24/7 Availability
AI tools are available around the clock, allowing job seekers to explore opportunities and receive assistance anytime.
6. Skill Gap Analysis
AI can identify gaps in a candidate’s skillset and recommend courses or training programs to enhance employability.
7. Bias Reduction in Screening
Properly designed AI systems can minimize unconscious bias in the initial stages of candidate evaluation. This is tricky because we don’t know what AI screening tools are being used.
8. Enhanced Interview Preparation
AI tools like chatbots can simulate interview scenarios, helping candidates practice and improve their responses. Practicing interviewing with a Generative AI tool could be so helpful!
9. Global Reach
AI platforms provide access to opportunities worldwide, breaking geographical barriers.
10. Data-Driven Insights
AI analyzes market trends, salary benchmarks, and industry demands, offering job seekers valuable information.
Cons
1. Lack of Human Touch
AI-driven interactions can feel impersonal, making candidates feel undervalued or misunderstood. There is no way around it anymore.
2. Over-Reliance on Keywords
AI systems may reject resumes that lack specific keywords, even if the candidate is highly qualified. Job searching is ALL about keywords!! Your resume keywords need to match keywords in job descriptions.
3. Potential Bias in Algorithms
AI algorithms may inadvertently perpetuate biases if not properly designed or tested. Unfortunately, we don’t know where it went wrong until it is too late.
4. Privacy Concerns
The use of personal data by AI systems raises concerns about data security and misuse. Remember to set your privacy settings. Privacy is in your hands.
5. Limited Understanding of Context
AI struggles to understand nuances or non-traditional career paths, potentially overlooking strong candidates.
6. Risk of Exclusion
Candidates unfamiliar with AI-driven systems or lacking AI literacy may be disadvantaged. A job candidate needs to understand how AI works in order to navigate the process equally.
7. Algorithmic Errors
Mistakes in AI decision-making can lead to the exclusion of qualified candidates or matching with irrelevant roles.
8. One-Size-Fits-All Recommendations
AI job-matching tools might not account for unique career aspirations. AI tools typically work the same for everyone and one size does not fill all.
9. Over-Screening
AI may overly filter candidates, making it harder for individuals with unconventional skills or experiences to get noticed.
10. Job Displacement in Recruitment
Automation of recruitment processes may lead to a reduced demand for human recruiters, impacting jobs in HR.
To learn more about how you can make AI work for you during your next job search, check out our Job Searching with AI video!
AI and Your Money
By Susan Gonzales on 12/13/2024 @ 05:14 AM
AI and Your Money
You may already know that AI is being used behind the scenes in almost every aspect of our money. AI tracks user behavior to detect suspicious activities or unauthorized access. AI notifies us about overspending, upcoming bills, or unusual account activity. AI tools provide insights into credit scores and suggest ways to improve them. AI evaluates creditworthiness faster and more accurately by analyzing alternative data sources.
These are all great tools but like everything with AI - there are some good and not so good things about how it works. In this case, beware of AI and applying for a loan for a house, car, personal items or anything! The AI behind loan applications has been known to get it wrong because the algorithm (the instructions) have been written too narrowly and can discriminate.
For example, AI tools track when we make a mistake and correct it on our loan application. It identifies our shopping patterns, bill payment history, zip code and more. As you can imagine, a person is more likely to make mistakes applying for a loan on a device. What about someone who is impaired? AI can discriminate on a loan application based on zip code. It will know if the zip code is from a higher or lower-income area.
Beware of the “Click here and get approved for a loan in minutes!!” ads online. These could be fake sources or financial institutions with high interest rates to take advantage of people or they could have a bad reputation in loan management. Most importantly, do your homework and only seek financial loans from reputable financial institutions. Embrace AI literacy - understanding how the basics work.
Your money matters!
1. Budgeting and Expense Tracking
- Personal Finance Apps: Apps like Mint or YNAB use AI to categorize transactions, analyze spending patterns, and recommend budget adjustments.
- Automated Alerts: Notify users about overspending, upcoming bills, or unusual account activity.
2. Investment Management
- Robo-Advisors: Platforms like Betterment or Wealthfront use AI to create and manage diversified investment portfolios based on risk tolerance and financial goals.
- Algorithmic Trading: AI-driven algorithms execute trades based on market data and trends, optimizing returns.
- Market Predictions: AI analyzes news, social media, and financial reports to predict market movements.
3. Fraud Detection
- Real-Time Monitoring: AI systems flag unusual transactions, helping prevent fraud or identity theft.
- Behavior Analysis: Tracks user behavior to detect suspicious activities or unauthorized access.
4. Credit and Loan Management
- Credit Score Monitoring: AI tools provide insights into credit scores and suggest ways to improve them.
- Loan Approvals: AI evaluates creditworthiness faster and more accurately by analyzing alternative data sources.
- Debt Management: Offers strategies to pay off debt efficiently by simulating repayment plans.
5. Personalized Financial Advice
- Chatbots and Virtual Assistants: AI-powered assistants like Erica (Bank of America) or Cleo answer financial queries and provide tailored advice.
- Goal Tracking: Helps set and achieve savings goals by recommending actionable steps.
6. Tax Optimization
- Tax Filing Tools: Tools like TurboTax use AI to identify deductions, reduce errors, and simplify tax filing.
- Audit Predictions: AI evaluates the likelihood of a tax audit and offers preemptive solutions.
7. Savings Optimization
- Automated Savings: Apps like Digit analyze income and spending habits to transfer small amounts into savings without impacting cash flow.
Interest Rate Comparisons: AI recommends the best savings accounts or investment options for higher returns.
8. Business Financial Management
- Cash Flow Forecasting: AI predicts future cash flow for businesses, helping them plan better.
- Invoice Management: Automates invoicing and payment reminders to ensure timely payments.
- Expense Reconciliation: Streamlines tracking and categorizing business expenses.