Krishnan, S (2025) AI-based Personal Financial Management: Opportunities and Challenges. AI-based Personal Financial Management: Opportunities and Challenges, 13 (1). pp. 68-73.

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Abstract

AI powered tools are revolutionizing as they are hands free, automated, and data
driven. AI allows individuals to track spending, investment management, and future
goal achievement with little manual effort through numerous AI powered tools like
machine learning algorithms, robo-advisors, and virtual assistants. AI enhances
financial literacy, gives real time details, and sets personalised strategy targets to
each and every individual through big data and predictive analytics. While AI-based
Personal Financial Management offers various benefits, it facesome problems also.
Majority of concerns focus on privacy as AI is data sensitive and personal. Access to
finances without privilege can cause fraud, identity theft, and various other outcomes.
AI algorithms are also perceived to be unbias but efficient. If unwilling trained data
is used for algorithms, results can be unfair sponsorship. Additionally, less human
supervision can be regarded to be more efficient, but putting too much trust in AI led
financial tools can cause suboptimal decision making within intricate scenarios. Lack
of regulatory framework concerning AI in personal finance is an ethical and legal issue
too. This article analyzes the benefits and issues associated with AI-based personal
financial management. It explains the ways in which AI assists users in their financial
decisions through automation, analytics, and risk management. Finaly, enhancing
AI-Finance security, making algorithms highly transparent, and developing effective
regulations are some of the suggested measures for the enhancement of AI-based
Personal Financial Management systems. AI is expected to update the way people
manage with their finances, so its use in personal financial management will increase
as the technology improves. It is very important to recognize the opportunities and
challenges in order to encourage responsible use of AI technology in the finance

Item Type: Article
Uncontrolled Keywords: Finance, AI, Sensitive, Personalized, Algorithms
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Dr. B Sivakumar
Date Deposited: 25 May 2026 09:27
Last Modified: 25 May 2026 09:27
URI: https://ir.psgcas.ac.in/id/eprint/2862

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