As the AI revolution marches on, we explore whether this tech could help cut your monthly spending.
Like many of us, I have mixed feelings about the rapid rise of artificial intelligence (AI).
While the technology is clearly a terrifying tool in the world of scams, it also has invaluable applications for money management.
As part of a loveMONEY investigation last year, I found that AI could save me £173 on my monthly food shop, if used correctly.
This time, I decided to take things a step further and see whether this tech could help with a more thorough overhaul of my finances.
I opted to look at energy, insurance, wasted spending and even anniversary gift-giving.
As I tend to focus my AI use on ChatGPT, this seemed like the simplest place to start.
Overall, the tech offered to save me £1,293 per year – although I am a little sceptical over some of the findings.
Energy: savings of between £300 and £700 (questionable)
With the Energy Price Cap already standing at a hefty £1,755 for the typical household and bills set to rise further in January, gas and electricity bills are a key concern for many of us – myself included.
To see if AI could help, I asked how a terraced house in the north of England (i.e my home) could slash costs.
Suggestions included loft insulation, boiler upgrades and draught proofing.
The tech also gave me a detailed cost breakdown and an outline of the difference these alterations could make to my annual bills.
Savings: When I entered my modest monthly payments of £89, the AI suggested that its tips could save me between £300 and £700 per year.
While the figure of £700 seems a little outlandish, not all its suggestions were off base.
And, of course, I’d need to factor in the price of boiler upgrades and loft insulation – something the AI failed to consider.
Insurance: cut costs by up to £53 per year
With our home insurance up for renewal shortly, I decided to follow this writer’s example and ask ChatGPT for advice on the best price comparison sites.
At first, I was a little underwhelmed. The sites it suggested are pretty well-known and would no doubt come up during a basic online search.
However, it also offered some worthwhile tips, such as checking the excess on your home insurance and considering customer service ratings.
Savings: While I was familiar with all the sites the AI suggested, it could be a great shortcut for those who haven’t previously taken advantage of price comparison services.
By using price comparison, I shaved £53 off my home insurer’s automatic renewal quote.
Subscriptions: save up to £540
It also seemed wise to let ChatGPT take a look at my overall spending.
I went through my most recent bank statement, entered the key information and asked for honest feedback on areas of potential wastage.
Despite my interest in AI, I was a little reluctant to input too much of my personal information and took every step to anonymise the data.
The AI’s response quite rightly focused on my sky-high bill for unused subscriptions.
These included almost £20 on the lottery per month. What were the chances I’d ever win?
Plus, there were two TV subscription services we rarely use.
Savings: This was arguably the most fruitful aspect of my experiment, forcing me to examine my casual spending. As a result of AI’s analysis, I cancelled £45 per month in subscriptions, or a whopping £540 per year.
Admittedly, I should have made some of these savings myself long ago, but it was useful to have an objective view, even if from a non-human perspective.
The world’s AI superpowers, ranked
Complaints letter: a helpful start
After a recent issue with my pension provider, it’s fair to say I’ve had a lot of back-and-forth with the company in question.
Despite spending 15 years as a personal finance journalist, the letters and emails often take a fair while to draft, so I asked AI for a template.
While the result was far from perfect, it did provide a useful building block, allowing me to enter the specific details of my grievance.
Hidden fees, FCA breaches, poor customer service and other reasons to complain to your bank
Anniversary gifts: a damp squib
In my final test, I gave the AI a more personal challenge.
With my anniversary approaching, I enquired what I should buy a 48-year-old man who is interested in cars and gangster films.
I set a price limit of £50 – as we’re not big spenders when it comes to anniversaries.
However, the results felt a little impersonal.
They included a Mini Cooper wireless computer mouse, a gangster film art print and a car-themed Lego kit. I am pretty confident my partner doesn’t play with Lego.
Savings: As I decided not to go for any of these suggestions, the tool didn’t save me any money this time. That said, I wouldn’t rule it out as an idea generator in the future.
A final word of warning
As many of our readers know, this technology is prone to so-called ‘hallucinations’, in which it presents false information as fact.
It’s therefore vital that you double-check any results it feeds you, especially where your finances are concerned.
It also helps to ask the tech to search the internet in real-time to ensure you’re getting the most recent data.
So would I use AI for another financial check?
While I wouldn’t be willing to hand over the reins of my finances to this nascent technology just yet, I can see how it could help with saving and may dip into it every now and again, especially as it invariably becomes smarter and more sophisticated.