Empowering Financial Decisions with AI: Optimizing Strategies for Financial Planning and Wealth Management

Abstract

Incorporating Artificial Intelligence (AI) into personal financial planning has transformed the landscape of equity investment and wealth management strategies, providing sophisticated tools for decision-making and data analysis. The present study aims to explore the transformative impact of AI on investment strategies and overall financial well-being through a qualitative analysis of recent academic research literature, industry reports, and practical case studies. This study used text-mining analysis to represent word clouds and highlight the most frequently used words. This article discusses how AI improves security through fraud-detection algorithms, customer support, and credit scoring accuracy using machine learning. AI in banking and finance has the potential to create significant value by enabling personalized services, reducing costs through automation, and uncovering new opportunities. Although technological integration offers great advantages, it also presents challenges concerning data privacy, algorithmic bias, and long-term impact on individual financial outcomes. This study emphasizes AI’s potential to democratize advanced financial planning techniques, making them accessible to a wider range of potential investors. It also addresses ethical considerations and proposes guidelines for implementing responsible AI in personal finance. Overall, the study highlights AI’s transformative potential in personal finance and wealth management, urging financial institutions to embrace an AI-first mindset for sustainable growth and innovation, as outlined in SDG (Sustainable Development Goals) 9.

Keywords: Artificial Intelligence, Wealth Management, Investment, Financial Well-Being, Decision-Making

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