Empowering women with financial literacy is crucial for achieving economic independence and gender parity. Despite progress, significant gaps in financial literacy persist among women globally, particularly in low- and middle-income countries (LMICs). Artificial intelligence (AI) and digital tools are emerging as powerful allies in addressing these disparities. This report consolidates key initiatives that leverage AI to enhance women's financial literacy and inclusion.
Key Facts
- Women are among the groups least inclined to talk about money.
- To help people receive faster answers to their financial inquiries, a nonprofit has introduced a new AI tool.
The majority of Americans believe that discussing money is a private
matter, and women are particularly hesitant to do so.
However, experts warn that if individuals don't ask the issues they need help with, it could financially harm them.
Using an online AI chatbot, a women-focused NGO has introduced a new method to assist them in receiving quicker responses to their questions.
Stacy Francis, a certified financial advisor and the president and CEO of Francis Financial in New York City, created the nonprofit Savvy Ladies more than 20 years ago.
Francis founded the charity organization with the intention of assisting other women in avoiding similar circumstances after witnessing her grandmother continue to live in an abusive environment due to a lack of funds.
Visitors to the Savvy Ladies website may now put in their financial inquiries and receive instant responses filtered from the website's content authored by CFPs and other financial professionals thanks to the new chatbot, which
is made available by Microsoft Copilot.
The FA Council member for CNBC, Francis added, "We want to make sure
that we are able to help anyone, any woman who has a question." "She can literally go on this at three in the morning and get her question answered."
The initial meeting always ends with a request to speak with a professional who may offer counsel and direction one-on-one by calling the Savvy Ladies helpline. Judy Herbst, executive director of Savvy Ladies, stated, "We want everyone to grow and learn, but still feel that they're they can come and ask their own individual question and get matched.”
AI tools can’t replace financial advice
intelligence language models might have a significant and developing impact on financial literacy.
However, he noted that the tools of today are continuously evolving and should be used in addition to, not as a substitute for, our own independent financial knowledge and judgment.
"You have to be able to interact with them in order to use these tools; but in order to interact with them, you have to be able to know what questions to ask, as well as how to ask them," Roberts stated. "And you need to be able to comprehend the answers that are being returned to you.”
Roberts stated that it's difficult to predict where these tools will be, even in a year or two, because of the rapid pace of advancement in this field. There are already indications that individual investors are beginning to use
these tools.
According to a survey conducted by the CFP Board, a professional association for certified financial planners, last year, investors are more
willing to believe advise from generative AI tools than from social media.
However, if that advise has been confirmed by a financial advisor, individuals are more likely to feel at ease acting upon it, according to the
findings.
The board members of Savvy Ladies, who are IT specialists, are hoping that the new chatbot will aid in the nonprofit's growth.
"We live in a world where you scroll through Instagram or TikTok and you expect a response right away," Savvy Ladies board member and Hello
Prenup CEO Julia Rodgers remarked.
"Nonprofits like Savvy Ladies must stay on top of that in order for us to continue providing those services to those in need," the speaker stated.
Herbst claims that since Savvy Ladies released the tool, the chatbot has been asked questions about creating a monthly budget, improving credit, and increasing income.
According to her, the organization is continually improving the chatbot.
Aligning its voice with the organization's mission is one of its objectives. Herbst stated, "It's a navigator, but we want a feminine voice that comes through softly.”
Conclusion
AI-driven initiatives are making significant strides in improving women's financial literacy and inclusion. By addressing biases in financial processes and leveraging digital tools, these programs are empowering women, fostering economic independence, and contributing to gender parity. Continued efforts and innovations in this space are essential to sustain and expand these gains globally.
