MAJOR PROJECT REPORT

ON
“AN ANALYSIS OF AI IN
PERSONALIZED FINANCIAL PLANNIG”

SUBMITTED IN PARTIAL FULFILLMENT FORTHE

AWARD OF THE DEGREE OF BACHELOR IN BUSINESS
ADMINSTRATION (BANKING AND INSURANCE)
2022-25
Submitted To: Submitted By:
Dr. Ruchika Gehlot Varun Chaudhary
Associate Professor, MSI 04414901822
BBA(B&I),Shift-1

Maharaja Surajmal Institute

Recognized by UGC u/s 2(f), NAAC Accredited ‘A’ Grade
Affiliated to Guru Gobind Singh Indraprastha
University,Delhi
C-4, Janakpuri, New Delhi-110058
 CERTIFICATE

I, Mr./Ms. Varun Chaudhary, Roll No. 04414901822 certify that the Major Project Report (Paper
Code: BBA (B&I) 314) entitled “An Analysis Of AI In Personalized Financial Planning” is
done by me and it is an authentic work carried out by me. The matter embodied in this has not been
submitted earlier for theaward of any degree or diploma to the best of my knowledge and belief.

Signature of the Student:

This is to certify that Project Report entitled “An Analysis Of AI In Personalized Financial
Planning” which is submitted by Varun Chaudhary in partial fulfillment of the requirement for the
award of the degree Bachelor in Business Administration (Banking and Insurance) to Maharaja
Surajmal Institute Affiliated to Guru Gobind Singh Indraprastha University, C-4, Janakpuri, New
Delhi-110058 is a record of the candidate own work carried out by him under my supervision. The
matter embodied in this report is original and has not been submitted for the award of any other
degree.

Signature of the Guide:

Name of the Guide: Dr. Ruchika Gehlot

Designation: Associate Professor, Msi

 ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and
assistance from many people and I am extremely privileged to have got this all along
the completion of my project. All that I have done is only due to such supervision
and assistance and I would not forget to thank them.
I respect and thank Dr. Ruchika Gehlot, for providing me an opportunity to do the
project work and giving us all support and guidance which made me complete the
project duly. I am extremely thankful to her for providing such nice support and
guidance, who took a keen interest in my project work and guided me along, till the
completion of my project work by providing all the necessary information for
developing a good system.
[Link] CHAPTER PAGE
NO.

1 INTRODUCTION 2-7

2 LITREATURE REVIEW 8-10

3 RESEARCH STUDY 11-13

• PROBLEM DEFINITION 12

• NEEDS 13

• OBJECTIIVES 13

• HYPOTHESIS 13

4 RESEARCH METHADOLOGY 14-16

5 DATA ANALYSIS AND INTERPRATATION 17-42

6 FINDINGS 43-45

7 SUGGESTIONS AND RECOMMENDATION 46-47

8 CONCLUSION AND LIMITATION 48-50

9 BIBILOGRAPHY 51-52

10 QUESTIONARIEE 53-56
 CHAPTER – 1

INTRODUCTION
ABOUT THE TOPIC
Imagine a friendly robot that examines your finances, providing intelligent advice on saving

and creating a customized plan just for you. This is how AI revolutionizes personalized

financial planning! Here's how it simplifies the journey:

1. Financial Genius:

Comprehensive Financial Analysis: Through advanced algorithms and data-driven analysis,

AI thoroughly examines your income, expenses, and long-term financial goals. By gaining

a deep understanding of your unique financial situation, AI can offer personalized

recommendations and strategies to optimize your financial health.

Expense Detective: With its meticulous categorization capabilities, AI scrutinizes every

transaction in your financial records, highlighting areas where you can potentially save or

allocate your funds more wisely. By identifying unnecessary expenses or potential cost- saving

opportunities, it empowers you to make informed decisions and maximize your savings.

Future Predictor: Leveraging powerful predictive models, AI forecasts future financial

scenarios based on your financial behaviour and market trends. This valuable insight assists

you in budgeting effectively, understanding the potential impact of life events (such as

purchasing a home or starting a family), and preparing for any financial challenges that may

lie ahead.

2. Personalized Mentor:

Goal Expert: AI functions as a personal financial advisor, tailoring investment strategies and

savings plans specifically to your short-term and long-term goals. Whether you dream of taking

a luxurious vacation or building a comfortable retirement fund, AI analyses your goals, risk

tolerance, and timeline to develop strategies that align with your aspirations.

Risk Manager: As a diligent risk manager, AI continuously monitors market trends, evaluates

investment options, and assesses your risk tolerance. By striking a balance between
potential gains and your comfort level, AI ensures that your investment portfolio is optimized

to align with your financial objectives. Through its sophisticated risk assessment, AI minimizes

the potential negative impact of market volatility on your financial well-being.

Automated Assistance: Beyond analysis and advice, AI offers practical assistance by

automating various financial tasks, such as bill payments and savings transfers. With this

efficient automation, you can save time and mental energy, allowing you to focus on more

important aspects of your life. AI becomes your reliable partner, ensuring that your financial

obligations are fulfilled accurately and promptly.

3. Security Guardian:

Fraud Detector: Security is a paramount concern when it comes to personal finances. AI acts

as a vigilant fraud detector, continuously scanning your transactions for any signs of suspicious

activity. It analyses patterns, detects anomalies, and proactively alerts you if it detects any

potential instances of fraud or unauthorized access. By being your trusty financial guardian,

AI safeguards the integrity and security of your financial fortress.

Alert Observer: With its advanced capacity to analyse data, AI can identify unusual spending

patterns that may indicate theft or identity fraud. By monitoring your financial activities

closely, it serves as a watchful and alert observer, capable of notifying you promptly when

it detects any irregularities. Through its proactive nature, AI provides an additional layer of

protection to ensure the confidentiality and safety of your financial information.

INTRODUCTION

In today's complex financial landscape, the importance of personalized financial planning has

become increasingly significant. As the intricacies of financial decision-making continue to

grow, it is crucial for individuals to have access to tailored financial guidance to navigate this

ever-changing environment effectively. Unfortunately, a significant portion of the population

remains unaware of the benefits of personalized financial planning or encounters challenges in

accessing it due to its often-exorbitant costs.

Therefore, this research project aims to delve into the current levels of awareness and

accessibility surrounding personalized financial planning. By examining and analysing the

existing landscape, we will gain insights into the extent to which individuals are informed about

this approach and are able to utilize it to their advantage. Furthermore, this undertaking also

explores the potential of artificial intelligence (AI) and its various applications in order to

revolutionize the accessibility and effectiveness of this vital service.

AI has emerged as a powerful tool in numerous industries, and the realm of personal finance

is no exception. By leveraging the capabilities of AI, we can potentially bridge the gap between

personalized financial planning and its widespread availability. By integrating AI algorithms

and machine learning into financial planning processes, we can create intelligent systems that

have the capacity to analyse vast amounts of financial data, identify key patterns and trends,

and generate tailored recommendations for individuals.

These AI-powered solutions have the potential to democratize financial planning, making it

accessible not only to the affluent few but also to the general public. By automating certain

tasks and streamlining the financial planning process, AI can eliminate some of the upfront

costs associated with human advisors, thus making personalized financial planning more

affordable and within reach for a wider population.

• WHAT IS PERSONALIZED FINANCIAL ADVISORY ?

Personalized financial advisory is all about receiving expert guidance that is specifically

tailored to your unique financial situation and goals. It can be likened to having a financial

GPS that not only points you in the right direction but also takes into account every twist and

turn on your individual financial journey, Consider it as:

1. A customized financial plan: Instead of a one-size-fits-all approach, you receive a roadmap

that is designed specifically for your income, expenses, investments, debts, insurance needs,

retirement goals, and more.

2. Expert advice: Your advisor provides insights and strategies based on your risk tolerance

and aspirations, covering everything from managing your day-to-day finances to investing for

the future and planning for major life events.

3. Ongoing support and guidance: This is not a one-time service. Your advisor remains by

your side, monitoring your progress, making necessary adjustments to your plan, and

answering any questions you may have along the way.

4. Access to specialized knowledge: With your advisor's expertise and network, you gain

access to resources and insights that you may not have on your own. This empowers you to

make informed decisions about your finances.

Ultimately, personalized financial advisory helps you:

- Achieve your financial goals more efficiently and at a faster pace.

- Reduce stress and uncertainty by providing you with a clear path forward.

- Make informed financial decisions with confidence.

- Improve your financial literacy and gain independence in managing your money
• WHO CAN BENEFIT FROM PERSONALIZED ADVISORY ?

Anyone who wants to take control of their finances and achieve their goals can benefit,

regardless of their income or current financial situation. It is particularly helpful for:

- Young adults who are starting their careers and building their financial foundation.

- Individuals who are saving for major life events such as weddings, houses, or education.

- People who are approaching retirement and want to ensure their financial security.

- Anyone who is facing complex financial decisions or experiencing significant life changes.

• WHAT IS AI ?

Artificial intelligence (AI) mimics human cognitive functions like learning and problem-

solving. It was coined in 1955 and is based on machine learning. AI impacts industries like

healthcare, finance, and manufacturing, and is being used to develop new technologies like

self-driving cars and virtual assistants.

• HOW AI HELPS IN FINANCIAL PLANNING ?

AI is revolutionizing financial planning by providing data-driven insights, automating tasks,

assessing risks, personalizing plans, and improving customer experience.

 CHAPTER – 2

LITREATURE REVIEW
The CNBC article published on 24 August 2023 delves into the fascinating topic of the

increasing acceptance of AI-powered financial advisors in the world of finance. While

shedding light on the positive aspects, the article also sheds light on potential drawbacks and

concerns that arise from this emerging trend. According to a survey, it was found that an

impressive 31% of investors are open to trusting AI when it comes to financial advice, even

without independent verification. This highlights the growing faith in the capabilities of AI

technology within the investment community.

However, it is important to approach this newfound acceptance with caution, as the article

points out. It warns that the outputs generated by AI are not infallible. There is a possibility

that financial recommendations made by AI-powered advisors may not always be fool proof.

This is an issue of great concern, especially considering that many investors may not possess

the necessary skills and expertise to effectively question or scrutinize AI's recommendations

thoroughly. The lack of familiarity with AI and its inner workings may lead to blind faith in

the technology, potentially resulting in flawed financial advice being followed.

While it is undeniable that AI holds immense promise in the financial advisory space, it is

crucial that users approach this technology with a sense of mindfulness. The potential for errors

or incomplete understanding, particularly from the user's end, cannot be ignored. This brings

us face to face with the need for a careful and informed use of AI-powered financial advisors.

Investors should strive to educate themselves about the intricacies of AI algorithms and be

prepared to question the recommendations provided, even if they come from an AI system. A

critical and wary approach can help mitigate risks associated with relying exclusively on AI's

advice.
In conclusion, the acceptance of AI-powered financial advisors is a trend that cannot be

ignored. It is encouraging to see that a significant portion of investors are open to leveraging

AI's capabilities for financial guidance. However, the potential pitfalls and limitations must be

acknowledged and addressed. By combining the benefits of AI technology with human

expertise and intuition, investors can make the most informed decisions. It is essential for both

the investment community and AI developers to work hand in hand, ensuring that the

integration of AI-powered financial advisors is done judiciously and responsibly. Only then

can we fully harness the potential of this exciting technology in the world of finance.
 CHAPTER – 3

RESEARCH STUDY
 PROBLEM DEFINITION :

• Despite the numerous advantages it offers, personalized financial planning remains a mystery

to many individuals. One of the main reasons for this prevalent lack of understanding is a

general lack of public knowledge about financial planning and its intricacies. Many people

simply do not know where to start or what steps to take in order to create a solid financial plan.

• Another contributing factor to this mystery is the presence of misconceptions regarding the

worth of personalized financial planning. Some individuals believe that they can handle their

finances on their own or that they cannot afford the services of a professional financial planner.

These misconceptions often lead to suboptimal decision-making and missed opportunities to

maximize one's financial potential.

• Additionally, the excessively high expenses associated with traditional financial planning

services pose another significant obstacle for a considerable portion of society. The cost of

hiring a financial planner or using specialized financial software can deter many individuals

from seeking the professional help they need.

• This financial barrier often perpetuates a state of financial anxiety, as individuals struggle to

navigate their own finances without the appropriate guidance. Without proper financial

awareness and education, individuals may find themselves making inefficient financial

decisions and missing out on opportunities for growth and financial security.

• Therefore, it is essential that efforts are made to increase public knowledge and debunk

misconceptions surrounding personalized financial planning. By providing accessible financial

education and affordable alternatives to traditional financial planning services, more

individuals can benefit from the numerous advantages that personalized financial planning has

to offer.
 NEED OF STUDY

In light of the numerous challenges presented by the current state of personalized financial

planning, it is of utmost importance to conduct a comprehensive evaluation of the existing

comprehension of this field. Furthermore, it is essential to explore and implement innovative

approaches that will not only improve its accessibility but also enhance its affordability.

Through this crucial undertaking, our goal is to address the pressing need for advancement by

meticulously examining several key aspects.

1. Public Perception

2. Cost Barriers

3. AI as a Disruptor

4. Awareness level

OBJECTIVE OF STUDY

The primary goals of this project are as follows:

1. To Measure public awareness regarding personalized Financial Planning.

2. To Examine cost obstacles of personalized Financial Planning.

3. To Assess the potential of AI with reference to Financial Planning.

HYPOTHESIS

H0 – There is no significant impact of artificial intelligence in personalized financial

planning

H1 – Artificial intelligence has significant impact on personalized financial planning

 CHAPTER – 4

RESEARCH METHODOLOGY
 RESEARCH TYPE

DESCRIPTIVE RESEARCH –

In a descriptive design, a researcher is solely interested in describing the situation or case

under their research study. It is a theory-based design method which is created by

gathering, analysing, and presenting collected data

SAMPLE DESIGN -

• Non-Probability :- In non-probability sampling, the researcher chooses members for

research at random. This sampling method is not a fixed or predefined selection process.

NON- PROBABILITY -

• CONVINENCE SAMPLING :- This method is dependent on the ease of access to subjects

such as surveying customers at a mall or passers-by on a busy street.

DATA COLLECTION

1. PRIMARY DATA -

Define the variables needed for analysis.

Decide on data collection methods, e.g., surveys, interviews, or observations.

If applicable, consider conducting interviews with financial experts or professionals.

• QUESTIONAIRE SURVEY

A questionnaire is a research tool featuring a series of questions used to collect useful

information

from respondents. I can use Google forms for questionnaire.

• INTERVIEW

Conduct interviews with financial professionals, about their experiences and perspectives on

AI-powered financial planning.

2. SECONDARY DATA

Explore existing literature and research studies on AI in financial planning.

• I will Collect data from articles .

1. I will collect a data from some websites and already available research project in internet.

2. Analyse relevant news articles, industry reports, and research papers to understand the

current state and future projections of AI in financial markets.

 CHAPTER – 5

DATA ANALYSIS AND

INTERPRETAION
SURVEY ANALYSIS -

INTERPRETATION-

From the above graph ,it is found that the age group of responses obtained during the

research study is between 17 to 52 , where the major age group is teenagers.

 EDUCATIONAL Count Ratio
QUALIFICATIONS percentage
GRADUATE 32 45.8%

HSSC 28 40%

POST GRADUATE 8 11.4%

PhD 1 1.4%

SSC 1 1.4%

Total 70 100%

INTERPRETATION-

From the above graph it is found that the majority of respondent have completed their higher

education and done their graduation and post-graduation.

 INCOME Count of Ratio
income percentage
1000-15000 48 68.6%

15000-30000 11 15.7%

30000-45000 4 5.7%

45000-60000 2 2.9%

60000-75000 2 2.9%

75000-100000 1 1.3%

MORE THAN 2 2.9%

100000
Total 70 100%

INTERPRETATION-

From the above graph it is found that the majority of respondent have the income between

1000-15000 that is 68.6% ,15.7% have an income between 15000-30000 , 5.7% respondent

have income between 30000-45000, 2.9% respondent have income between 45000-60000,

2.9% respondent have income between 60000-75000,1.3% have income between 75000-

100000, and 2.9% have income more than 100000.

 HAVE YOU
HEARD OF Count of Ratio
FINANCIAL responses percentage
PLANNING .
NO 12 17.1%

YES 58 82.9%

TOTAL 70 100%

INTERPRETATION-

Based on the data collected it can be observed that 82.9% respondent are aware about the

financial planning , where someone helps to manage their portfolio for future goals. And on

other hand 17.1% are still unaware about it.

 NEED A PLAN Ratio
TO MANAGE Count of percentage
YOUR responses
MONEY NOW
OR LATER ?
NO 14 20%

YES 56 80%

Total 70 100%

INTERPRETATION-

From the above pie chart it is found that 80% of respondent feels like they need a plan to

manage their money , alternatively 20% don’t feel like they need any plan to manage their fund
 HOW DID YOU Ratio
CREATE YOUR Count of percentage
FINANCIAL responses
PLAN ?
FINANCIAL 28 41.8%
ADVISOR
APPS 11 16.4%
CREATED 44 65.7%
MYSELF
Total 67 100%

INTERPRETATION-

From the above graph it is found that 65.7% respondent create financial plan from themselves

only and this is followed by 41.8% respondent take advice from financial advisors to make a

plan , and 16.4% respondent create it using application.

WHATS HOLDING YOU BACK Count of

FROM THINKING ABOUT responses Ratio percentage

INVESTMENT PLANNING?

DON’T NEED IT 13 28.9%

CONFUSING 21 46.7%

SCARED OF COST 11 24.4%

Total 45 100%

INTERPRETATION-

From the above pie chart it is found that 46.7% respondent found that financial planning is

confusing , 28.9% respondent feel like they don’t need any kind of money planning , and 24.4%

respondent are scared of cost for financial planning.

 HOW MUCH
PER MONTH Count of Ratio
WOULD YOU BE responses percentage
COMFARTABLE
TO PAY A
PERSONALIZED
FINANCIAL
PLANNING
0-500 34 48.6%
500-1000 17 24.3%
1000-1500 9 10%
1500-2000 7 12.9%
2000-5000 3 4.2%
Total 70 100%

INTERPRETATION-

Based on the data collected it is found that 48.6% respondent are comfortable to pay from RS.

0-500, 24.3% respondent are comfortable to pay RS. 500-1000, 10% respondent are

comfortable to pay RS.1000-1500, 12.9% respondent are comfortable to pay RS. 1500-2000,

and 4.3% respondent are comfortable to pay RS. 2000-5000 for a personalized financial

planning.
 HOW
COMFORTABLE Count of Ratio
ARE YOU USING responses percentage
APPS(ON THE
SCALE OF 1 TO
5)
1 14 20%
2 17 24.3%
3 19 27.1%
4 6 8.6%
5 14 20%
Total 70 100%

INTERPRETATION-

Based on the data collected it is found the repondent respond on the scale of 1 to 5 where 20%

respondent are not at all comfortable , 24.3% respondent are little bit comfortable , 27.1%

respondent are somewhat comfartable , 8.6% respondent are comfortable and 20% respondent

found it very comfortable.

 WOULD YOU BE
MORE LIKELY Count of Ratio
TO USE A responses percentage
INVESTMENT
PLANNING APP
IF IT WAS FREE
OR REALLY
CHEAP?
YES 51 27.1%

NO 19 72.9%

Total 70 100%

INTERPRETATION-

From the above Pie chart it is found that 72.9 % respondent likely to use a money planning

app if it was free or really cheap and 27.1% respondent are not interested to use any money

planning app to manage their fund.

 DO YOU
BELIVE AI Count of Ratio
COULD BE A responses percentage
VALUABLE
TOOL FOR
INDIVIDUAL
TO ACHIEVE
THEIR
FINANCIAL
GOALS
YES 37 52.9%

NO 6 8.6%

MAYBE 27 38.6%

Total 70 100%

INTERPRETATION-

Based on the above data it is found that 52.9 % respondent belive that AI could be a

valuable tool for individual to achieve their financial goals , 38.6% respondent thinks that

AI might help individual to achieve their financial [Link] 8.6% respondent belive that it was

not a usefull tool for financial planning.

 WOULD YOU BE
WILLING TO USE AI Count Ratio
POWERED of perce
FINANCIAL respon ntage
SERVICES IF THEY ses
ARE AVAILABLE
YES 51 72.9%

NO 19 27.1%

Total 70 100%

INTERPRETATION-

From the above data it is found that 72.9% respondent are willing to use AI powered financial

services if they are available and 27.1% respondent and not intrested to use any AI powered

financial services.
 TRUST ON AI
GENERATED Count of Ratio
FINANCIAL responses percentage
ADVICE (ON
THE SCALE
OF 1 TO 5 )
1 20 28.6%
2 6 8.6%
3 30 42.9%
4 11 15.7%
5 3 4.3%
Total 70 100%

INTERPRETATION-

The above data shows that the 37.2% respondents who rated on the scale of ‘1’ to ‘2’ are not

trusting the AI generared financial advice , 42.9% are still unaware about it and 20%

respondent would trust AI generated financial advice

 UNDER WHAT
CIRCUMSTANCES Count of
WOULD YOU PREFER AI responses
– POWERED FINANCIAL
PLANNING ?
LOWER COST 15
FASTER SERVICE 14
24/7 AVAILABLITY 12
SPECIFIC FINANCIAL 10
GOALS
ALL OF THE ABOVE 39

INTERPRETATION-

Based on the above data 21.4% respondents prefer AI powered financial planning if it has

lower cost , 20% respondent prefer AI powered financial planning it because it provides faster

service , 17.1% respondents prefer it because it has 24/7 availablity, 14.3% respondents will

prefer it because it focuses on specific financial goals and 55.7% of respondents will prefer AI

powered financial planning if AI tool will fullfill all the above circumstances.
PRACTICAL ANALYSIS -
 The image depicts the practical example that shows the potential of Artificial Intelligence in

personalized financial planning.

There are several AI tools and chatbots available for personalized financial planning like-

1. Wally

2. You need a budget

3. Acrons

4. Stash

5. Cleo

6. Olivia

7. Albert

8. Open AI

9. Gemini

We are using , Open AI here which is popularly known as chatgpt , the reason behind using

chatgpt is it’s a popular and trending Ai tool in current time. Chat gpt is easy to use.
 Explanation –

Prompt given to chatgpt –

Hey AI, act as an financial planner and make personalized financial plan for me , if my monthly

income is INR.1,00,000 and my monthly expenses are INR. 40,000

Response –
AI started with explaining what is meant by financial planning and what circumstances are

involved in financial planning

‘Creating a personalized financial plan involves understanding your income, expenses, financial

goals, risk tolerance, and investment preferences. Based on the information you've provided,

with a monthly income of INR 100,000 and expenses of INR 40,000, you have a monthly surplus

of INR 60,000.’

After that it has given me action plan for financial planning , it has divided my remaining

money into 5 circumstances –

1. Contingency fund

It describes that I have to save contingency funds for 3 to 6 months , with monthly expenses of

INR 40,000, aim for an emergency fund of INR 120,000 to INR 240,000. Allocate INR 20,000

from your monthly surplus to a high-yield savings account until this goal is met.

2. Debt repayment

It describes that pay off high interest debts particularly with high interest rates (e.g., credit card

debt), allocate a portion of the surplus towards paying it off more quickly. Let's allocate INR

10,000 for this purpose if applicable.

3. Investment

It promotes to invest for wealth generation over long term , it suggested three plans –

Equity Investments: Consider investing INR 15,000 in a diversified portfolio of stocks or

equity mutual funds. This is suitable for long-term growth.

Debt Investments: Allocate INR 5,000 towards debt instruments like bonds or debt mutual

funds for stability.

Retirement Savings: If not already covered in equity/debt investments, consider a retirement

account like the Public Provident Fund (PPF) or National Pension System (NPS), allocating

INR 5,000 monthly

4. Insurance

It suggests to by insurance plan to protect against unforeseen event, ensure you have adequate

health insurance and consider a term life insurance policy. The premium will depend on

various factors but aim to allocate INR 5,000 towards this. Adjust according to actual premium

costs

5. Goals and savings

It describes to save some money for short term and long-term goals , if we have specific goals

(e.g., buying a home, education), allocate the remaining surplus towards these. In this plan,

INR 5,000 can be directed to a goal-specific savings account or investment.

 Summary of action plan-

• Contingency Fund: INR 20,000

• Debt Repayment: INR 10,000 (if applicable)

• Investments: INR 25,000 (Equity and Debt)

• Retirement Savings: INR 5,000

• Insurance: INR 5,000 (adjust based on actual costs)

• Goals & Savings: INR 5,000

Additional tips given by AI-

• Budgeting: Regularly review and adjust your budget to optimize savings and expenses.

• Investment Review: Annually review your investment portfolio to rebalance and adjust

according to performance and goals.

• Financial Education: Continuously educate yourself about financial products, market

conditions, and investment strategies to make informed decision

Opinion given by AI –

This plan is a starting point. Adjustments may be necessary based on your specific financial

situation, goals, and changes in income or expenses. Consulting with a financial advisor can

provide personalized advice tailored to your unique circumstances.

 HYPOTHESIS TESTING
H0 – There is no significant impact of artificial intelligence in personalized financial planning

H1 – Artificial intelligence has significant impact on personalized financial planning.

According to the above study and analysis done , it is found that hypothesis H1

‘Artificial intelligence has significant impact on personalized financial planning.’ is found

to be true hence its accepted where as hypothesis H0 ‘There is no significant impact

of artificial intelligence in personalized financial planning’ is rejected.

CHAPTER – 6

FINDINGS
 Finding based on survey -

1. The study focused on individuals aged 17 to 52, with a significant portion being teenagers.

2. Awareness of financial planning services stands at 82.9%, indicating a high level of familiarity

among respondents.

3. A majority, 80%, acknowledge the need for financial planning, while 20% do not see its

importance.

4. Self-planning is the preferred method for 65.7% of respondents, followed by consulting

financial advisors (41.8%) and using applications (16.4%).

5. Perceived barriers include confusion about financial planning (46.7%), a belief in its

unnecessariness (28.9%), and concerns over costs (24.4%).

6. Payment willingness for personalized financial planning varies, with 48.6% comfortable

paying up to RS. 500, and smaller proportions willing to pay more, up to RS. 5000.

7. Comfort with financial planning shows a wide spectrum, from not at all comfortable (20%) to

very comfortable (20%), with the majority falling in between.

8. Interest in using a money planning app is high if it is free or low-cost, with 72.9% expressing

likelihood to use one; 27.1% express no interest.

9. Opinions on AI in financial planning are generally positive, with 52.9% seeing its value;

however, 8.6% doubt its usefulness.

10. A significant 72.9% show willingness to engage with AI-powered financial services, in

contrast to 27.1% who are not.

11. Trust in AI-generated financial advice is mixed, with a noteworthy 20% ready to trust it, despite

37.2% expressing distrust.

12. Key preferences for AI-powered financial planning include its lower cost (21.4%), faster

service (20%), 24/7 availability (17.1%), and focus on specific goals (14.3%), with a majority

valuing a comprehensive approach (55.7%).

 Finding based on interview –

1. Public awareness of personalized financial planning is low, with only 10-15% understanding its

benefits, showing a wide gap in knowledge about financial planning..

2. The primary educational challenge is changing the entrenched belief that financial planning

is limited to traditional, perceived safe investments like Fixed Deposits. There's also a

reluctance to explore other investments due to perceived complexity and the assumption that

professional advice is costly.

3. The costs associated with personalized financial planning vary significantly, starting at INR

5000, influenced by individual needs and the scope of services required. This variability

contributes to misconceptions about affordability.

4. Perceptions of unaffordability stem from misunderstandings about costs, lack of awareness of

budget-friendly options, previous negative experiences, and undervaluing the benefits of

financial planning.

5. AI enhances market analysis and investment insights but cannot match the detailed judgment

and personalized advice of human financial experts

6. AI broadens access to investment information but lacks the personalized guidance and expert

advice of financial professionals essential for effective planning.

7. AI offers potential benefits in tailoring financial advice and enhancing task efficiency.

Nonetheless, concerns about the loss of personal interaction, data security, and possible

inaccuracies due to a lack of practical understanding persist.

8. AI is poised to significantly influence the future of financial planning by facilitating quick access

to information and decision-making. However, the effectiveness of AI-generated advice

depends on individuals' ability to assess its accuracy and relevance.

9. Ethical AI in financial planning necessitates data privacy, transparency, bias mitigation, and

accountability to ensure its responsible and cautious application

 CHAPTER – 7

SUGGESTIONS AND
RECOMMENDATION
 Suggestions:

1. Enhance Awareness Through Digital Campaigns: Given the higher awareness among

teenagers, leverage social media and online platforms to run educational campaigns about the

importance and benefits of personalized financial planning.

2. Subsidize Financial Planning Services for Awareness: To address cost barriers, suggest

that financial institutions or governments could offer subsidized or free initial financial

planning sessions to increase public engagement and awareness.

3. Implement AI Demos: To demonstrate AI's potential in financial planning, financial service

providers could offer free demos of AI-driven financial planning tools, allowing potential

clients to experience the service before committing financially.

Recommendations:

1. Expand Research Demographics: Future studies should aim to include a more diverse

demographic spread, ensuring a wider representation across different ages, socio-economic

statuses, and geographic locations.

2. Develop AI Literacy Programs: Given the mixed perceptions of AI's accuracy, recommend

the development of programs aimed at increasing AI literacy among the public. This could help

in setting realistic expectations and increasing trust in AI-driven financial planning services.

3. Cost Analysis of AI Implementation: Recommend a thorough cost analysis of implementing

AI in financial planning services. This analysis should compare the operational costs against

traditional methods, considering both the potential reduction in service costs and the

improvements in service scalability and customization.

4. Regularly Update AI Algorithms: To address concerns about AI accuracy, suggest that

financial planning firms regularly update their AI algorithms with the latest market data and

financial planning strategies. This will help in maintaining the reliability and effectiveness

of AI-driven advice.
 CHAPTER – 8

CONCLUSION AND LIMITATION

 CONCLUSION –

This research was conducted with the objectives of measuring public awareness regarding

personalized financial planning, examining the cost obstacles of personalized financial

planning, and assessing the potential of AI with reference to financial planning. The findings

indicate that:

1. Public Awareness: There is a noticeable difference in awareness levels, with teenagers showing

greater awareness about financial planning and Artificial Intelligence compared to adults. This

directly addresses our first objective, highlighting a demographic disparity in financial literacy

and technology adoption.

2. Cost Obstacles: The research reveals a significant gap between the willingness to pay for

personalized financial plans, with individuals willing to spend up to INR 1,000, and the actual

starting costs of such plans from professional planners, which begin at INR 5,000. This finding

underlines the cost barriers that exist in accessing personalized financial planning services,

aligning with our second objective.

3. Potential of AI: Lastly, our study suggests that while there is optimism about the role of AI

in making personalized financial planning more accessible and potentially overcoming cost

barriers, there are concerns about its accuracy and reliability. This mixed perception directly

relates to our third objective of assessing AI's potential in this field. Although AI shows

promise in developing financial plans, the caution around its current limitations indicates the

need for further development and trust-building in AI-driven financial services.

In conclusion, our research offers valuable insights into the public's perception and the practical

challenges of personalized financial planning. It underscores the need for affordable,

accessible financial planning services and highlights the emerging role of AI as a potential

solution, although with acknowledged limitations that need addressing. Future efforts should

focus on enhancing AI's accuracy and reliability in financial planning to fully leverage its

capabilities in democratizing financial planning services.

 Limitations –

1. Sample Size and Geographic Limitation: The study was conducted with a small group of

70 participants, all from Nagpur city. This limitation means the results may not accurately

represent broader or different demographic groups' views and experiences outside this region.

2. Demographic Diversity: The research might not fully capture the diversity of perspectives

on personalized financial planning due to its limited geographic scope. Varied insights from

wider demographic segments could enhance the understanding of public awareness and

acceptance.

3. Perceptions of AI's Role: Our findings on AI's potential in financial planning are based on

participant perceptions, which might not fully reflect the actual capabilities and limitations of

AI technologies in this field.

4. Evolving Technologies and Industry Practices: The rapidly changing nature of both
financial planning and AI technology suggests that our conclusions might become less

relevant as new advancements and industry practices emerge

 CHAPTER – 9

BIBLOGRAPHY
 Reference article –

• [Link]

[Link]

Books –

1. AI in Financial Markets and Beyond

• Editors: Christian L. Dunis, Peter W. Middleton, Andreas Karathanasopolous, Konstantinos

Theofilatos

• Publisher: Risk Books

2. Artificial intelligence in banking and financial services

• Author: Raj Singh

• Publisher: Adhyyan Books

Websites -

• ChatGPT ([Link])
 CHAPTER – 10

QUESTIONARIE
 SURVEY QUESTIONS –

1. HAVE YOU HEARD OF FINANCIAL PLANNING , WHERE SOMEONE HELPS

YOU MANAGE YOUR PORTFOLIO FOR FUTURE GOALS

o YES

o NO

2. DO YOU FEEL LIKE YOU NEED A PLAN TO MANAGE YOUR MONEY NOW OR

LATER ?

o YES

o NO

3. IF YES , HOW DID YOU CREATE YOUR FIANCIAL PLAN

o FINANCIAL ADVISOR

o APPS

o CREATED MYSELF

4. IF NO , WHAT IS HOLDING YOU BACK FROM THINKING ABOUT

INVESTMENT PLANNING ?

o DON’T NEED IT

o CONFUSING

o SCARED OF COST

5. HOW MUCH PER MONTH WOULD YOU BE COMFORTABLE TO PAY A

PERSONALIZED FINANCIAL PLANNING

o 0-500

o 500-1000

o 1000-1500

o 1500-2000

o 2000-5000
6. HOW COMFTABLE ARE YOU USING APPS AND WEBSITES TO MANAGE

YOUR DAILY LIFE (ON SCALE OF 1 TO 5)

o 1-NOT COMFORTABLE 5-COMFORTABLE

7. WOULD YOU BE MORE LIKELY TO USE A INVESTMENT PLANNING APP IF

IT WAS FREE OR REALLY CHEAP ?

o YES

o NO

8. DO YOU BELIVE THAT AI COULD BE A VALUABLE TOOL FOR INDIVIDUAL

TO ACHEIVE THEIR FINANCIAL GOALS.

o YES

o NO

o MAYBE

9. WOULD YOU BE WILLING TO USE AI POWERED FINANCIAL SERVICES IF

THEY ARE AVAILABLE ?

o YES

o NO

10. IF YES, WOULD YOU TRUST AI GENERATED FINANCIAL ADVICE AS MUCH

AS ADVICE FROM HUMAN ADVISOR ? (ON SCALE OF 1 TO 5)

o 1-DISAGREE STRONGLY 2-AGREE STRONGLY

11. IF AGREE, UNDER WHAT CIRCUMSTANCES WOULD YOU PREFER AI-

POWERED FINANCIAL PLANNING ?

o LOWER COST

o FASTER SERVICE

o 24/7 AVAILABLITY

o SPECIFIC FINANCIAL GOALS

o ALL OF THE ABOVE

 INTERVIEW QUESTIONS-

1. In your experience, how aware are the general public about personalized financial

planning ?

2. What are the biggest challenges you face in educating the public about benefits of

personalized financial planning ?

3. What are the typical costs associated with personalized financial planning , how does

this cost vary depending on the complexity of the clients financial situation ?

4. What is the main reason why some people find personalized financial planning

unaffordable ?

5. What is your current understanding of Artificial intelligence and its role of financial

planning?

6. Do you think that AI could be used to provide personalized financial planning advice

to a wider audience ?

7. What are the potential benefits and drawbacks of using AI in financial planning ?

8. What role do you see AI playing in the future of financial planning ?

9. Are there any ethical concerns you have about the use of AI in financial planning ?