The Autonomous Financial Advisor: A Framework for AI-Powered Personal Finance Management

Abstract

The article provides an overview of the framework to create an AI-based Personal Finance Advisor (AIPFA) that would democratize access to advanced financial advice. Conservative financial advice has long been limited to people with a great deal of wealth, and the available digital financial advice systems are mostly descriptive as opposed to prescriptive. The AIPFA system proposed changes to this paradigm by a multi-layered architecture, which involves the aggregation of data, an advanced AI engine based on a four-stage analytical maturity model, and personalization features in addition to a conversational interface. The key aspect in this framework is a well-developed ethical governance model with fairness, transparency, and user-centric optimization. The article describes every element of the architecture, discusses how descriptive analytics transforms into prescriptive analytics, sets ethical standards in autonomous financial advice, and provides a roadmap for gradual implementation. Through this framework, financial institutions will be able to provide personalized and proactive financial advice at scale and enhance customer relationships and close key financial wellness gaps among underserved people.