Can artificial intelligence help close the gap in financial equality for women? | MCU Times

Can artificial intelligence help close the gap in financial equality for women?

Women in America are disproportionately understaffed when it comes to financial products and services. They own less than 1% of the country’s wealth, and they own even less of their own assets.

A new study from the UConn Women’s Center for Research showed that women entrepreneurs need more access to credit, education and capital – including investment – if they want to grow their businesses. This is where AI can help.

One of the fastest growing markets in finance is financial management, where artificial intelligence (AI) can be used to make decisions for clients’ investment portfolios. Because women are statistically more risk-averse than men, AI makes it easier for them to manage their money and reduce those risks.

Women who use an AI-assisted portfolio management service save an average of $ 7,000 a year compared to those who do not. In addition, the chance that a given woman will experience poverty after retirement has dropped by 40% since 2000 due to saving only 10% of her paycheck each month in a 401 (k).

How can women build wealth using advanced technologies, and what should they consider when looking at various services available in the market today?

Using AI to regularly analyze your income and expenses is a great way to help you better understand where your money goes each month. Most modern financial institutions have apps that automatically categorize your expenses into expense types, making it easy for you to see how much of your paycheck ends up going to rent / mortgage, food, transportation, entertainment, and so on.

Technology enables women to build wealth through AI-assisted financial management. Women are now able to invest and manage their finances by using technology that automatically invests and manages money for them. This software provides a unique algorithm for each woman with personal goals, risk tolerance, income and age.

AI software analyzes the data from bank account or credit card statements as well as her spending habits to come up with accurate recommendations on what she should do financially next. Technology has made it easier than ever for women who want to grow their own wealth without having to spend time investing on their own every day.

Ellevest is a great example of AI-enabled wealth management that aims to increase wealth among women. Some of the goals are not only to build wealth but also to save for retirement or financial emergencies.

Ellevest was built with data from an employer survey that found that women earn 97% less than men in the same roles over the course of their careers, thus requiring aggressive investment strategies to give them a third higher return on their portfolios to achieve same level of wealth.

Real estate investing is another example of where women are making progress in increasing wealth. A 2014 study by the National Association of Realtors showed that in the previous 12 months, 3.5 million single women bought a home, an increase of 37% from 2010 and an increase of 64% from 2006.

One of the people making this happen is Lakeisha Marion, a passionate mentor, educator and activist who has dedicated her life to empowering African American women. Her Wealthy Women’s Winning Circle provides a completely female space where members can learn about financial skills while increasing their confidence.

As a real estate investor, Marion helps women in Miami accumulate wealth through a combination of industry understanding as well as AI-enabled investment tools. AI-enabled real estate investment tools allow women to understand market trends as well as how they can use these tools to find the best deals.

“I want to help empower women financially so they can leave a lasting legacy for their families,” Marion says.

Investing in women as entrepreneurs is also an important part of the equation. AI can help women build wealth to invest in their own ventures, as well as effectively seek funding from angels and institutional investors.

The American Express OPEN State of Women-Owned Business report found that women own more than 9.4 million businesses and generate $ 1.9 trillion in revenue, and it is estimated that the number of women-owned businesses will increase by 2020. to twice as many privately held firms.

One area where AI’s influence will be felt most acutely concerns investment opportunities for women entrepreneurs who do not have equal access to finance. There are many reasons why this happens, including historically women have less exposure and fewer investment opportunities; there are fewer female-owned venture capital firms; When making investments, men tend to favor companies run by other men.

AI venture capital tools enable women to connect with women-run funds, diversity-focused funds and analyze the historical record of a fund’s portfolio diversity. Crunchbase is a perfect example of how this type of technology can help make venture capital more accessible to marginalized founders. When you start using AI to bring business owners more diversity, you increase opportunities for everyone.

AI is also able to provide much greater transparency in the early stages of a startup life when there is little information about them. This allows investors to make better decisions when assessing potential investments and ensure that their investments are different.

However, AI is not the only way to level the playing field. There are many small steps that can be taken to help women succeed in business. We need more training opportunities, mentorships and funding for women companies. We need a change in the mindset of who can run a business and succeed.

All of these insights make up one thing: A woman needs to prioritize investing in herself, and AI can help her do that.

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