From Code to AI: The Evolution of Financial Planning in 2024
In the realm of financial technology, the integration of Artificial Intelligence (AI) is revolutionizing the way companies approach programming and adapt their codes. The utilization of AI as a tool for users to input their financial information and create personalized financial planning has become increasingly prevalent. This is particularly advantageous for individuals with limited access to retirement resources, serving as a means to develop more efficient financial software.
Sri Krishnamurthy, CEO of QuantUniversity and a FinTech instructor at Northeastern University, shed light on recent AI developments and their applications in finances at the 2024 Retirement Symposium. According to Krishnamurthy, companies are not merely conducting research but actively incorporating AI into their intellectual property to enhance value and make significant investments.
Financial giants such as Morgan Stanley and Bloomberg have embraced AI, with Morgan Stanley integrating OpenAI into their software in 2022, while Bloomberg created a Large Language Model (LLM) named BloombergGPT.
AI has swiftly become a dominant force in programming for various reasons, including cost efficiency and improved user experiences. The shift towards using AI in place of traditional code writing has been fueled by the substantial cost disparity between the two approaches. Larger companies, such as Google, have also adopted AI to reduce costs by building foundational LLMs that gather global data and create standardizations based on user demographics.
However, concerns regarding the protection of private information have arisen, leading to a call for regulatory measures. While U.S. regulation is lagging, the European Union passed The AI Act in December 2023. Krishnamurthy emphasized the need for ethical and responsible integration of AI into products.
Despite regulatory challenges, Krishnamurthy highlighted AI as an evolving field, constantly improving based on user feedback and data evidence. The future lies in Generative AI, offering the potential to create personalized financial plans with basic data. One innovative product, the GPT Store, is emerging to provide intelligent applications contextualized for specific enterprise needs, utilizing Generative AI and LLMs.
While a flawless AI system is yet to be developed, Krishnamurthy expressed optimism about the future of AI in financial planning, emphasizing the success AI has achieved in user engagement. The evolution of AI programs to focus on user interactions and provide contextual answers is expected to drive specialized applications catering to specific needs in financial planning.
As more companies integrate AI and LLMs into their code, the possibilities for personalized and efficient financial planning expand. Krishnamurthy underscored the paradigm shift in product development, emphasizing a creative approach that incorporates behavioral aspects, user feedback, and understanding relationships between various elements. In this context, the potential of AI to transform and enhance financial planning services appears boundless. The development of Generative AI, coupled with the creation of language-converting code through Large Language Models, emerges as a valuable resource for crafting more personalized and specific retirement plans.
0 Comments