If You Don’t Learn Money, AI Will Control it For You | Sophie Thurner | TEDxFS

AI's Impact on Financial Decisions - AI is shaping financial decisions, analyzing and monetizing every tap and scroll [5] - The speed of finance has changed, democratizing the system but also opening it to split-second manipulation [10][11] - AI used in financial algorithms prioritizes profitability over fairness, contributing to high credit card debt and wealth inequality [13] - Individuals are potentially losing an average of €100,000 in interest due to AI-driven financial systems [19] The Role of Financial Literacy - Financial literacy is crucial to understand how AI works in personal finance and to make better financial decisions [12] - Countries with better financial literacy have less debt defaults, grow their economies quicker, and decrease income inequality [21] - A 10% increase in a country's financial literacy can decrease income inequality by 5% [21] AI in Financial Products - AI influences insurance premiums based on social media activity, potentially hiking up premiums for perceived risks [15][16] - AI plays a significant role in mortgage and loan decisions, making approvals or denials in 0.03 seconds [17] - Mortgage and loan rates are heavily influenced by AI, considering factors like device type, time of day, and social media connections [18] Future Outlook - The World Economic Forum suggests that by 2050, the inequality gap will widen, splitting society into those who understand AI in finance and those who are used by it [20]