The Impact of Artificial Intelligence on Consumer Finance

This paper examines how artificial intelligence is transforming consumer finance through three key applications: AI-powered financial assistants, digital payment systems, and hyperpersonalized financial products. These technologies are enhancing convenience, personalization, and efficiency in budgeting, payments, and investment management. However, their rapid adoption raises significant concerns around algorithmic bias, data privacy, cybersecurity, and consumer overreliance on automated tools. The paper also analyzes evolving regulatory frameworks such as GDPR, CCPA, and the proposed EU AI Act, which aim to address these risks. Overall, it argues that the future impact of AI in finance will depend on balancing technological innovation with ethical and regulatory safeguards.