Virtual, Reality Part 2: Using Artificial Intelligence to Make Money Decisions

Law students and new attorneys have a lot of financial questions to answer, including launching a career, setting up a new budget, starting to tackle student loans, moving to a new city, or even buying a home and starting a family. Luckily, modern AI tools like ChatGPT, Google Gemini, and even AI search engines can provide quick answers to financial questions, at any hour, in a conversational way. But as helpful as these tools are, using them effectively means knowing their limits and doing a bit of fact-checking along the way.

As Part 1 of the “Virtual, Reality” two-part series pointed out, there are important best practices to keep in mind when using AI. Clarifying the role of AI in process, understanding AI outputs, and verifying information are crucial (check out Part 1 for a quick checklist on Using AI Wisely). Once you’re comfortable navigating AI effectively, this powerful tool can help inform important financial decisions throughout your life and career.

Step 1: Practical Benefits of Starting Your Search with AI

AI tools shine when used to research general financial topics or brainstorm ideas. They respond in plain language, often breaking down tricky financial concepts into digestible bites. Instead of slogging through dense search results, you get a quick, tailored summary. Some platforms offer a paid-for version which can provide a “deep-research” function to further enhance the sourcing and potential accuracy of results.

Popular options include ChatGPT, Google Gemini, Perplexity, CoPilot, Microsoft Bing, Claude, and more. You can ask these models anything from “What’s a 401(k) and should I care about it in law school?” to “Give me a sample budget for a first-year associate.” In each case, the answer offers a handy starting point – like getting pointers from a knowledgeable friend.

Step 2: Best Practices for Using AI for Financial Decisions

When taking financial questions a step further with AI, it's important to be clear and specific to get the best results. Start by defining the financial topic or problem you need help with, such as budgeting, investing, or repaying student loans. Use precise language and include relevant details, like time frames or specific amounts, to help AI understand your prompt better. Additionally, telling AI to ask follow-up questions for better clarity can help refine the information and provide more tailored advice.

Using the newest generations of AI tools across various platforms like OpenAI’s ChatGPT, Google Gemini, Microsoft Copilot, Anthropic’s Claude, and Perplexity, you can tackle common scenarios and their underlying financial questions in seconds with conversational guidance. Common questions posed to models span from managing cashflow to investing, with high-level prompts like:

Budgeting: “Create a monthly budget for a law student in Boston with $2,000 in income and average expenses for rent, food, and transportation.”
Loan Strategy: “Compare the total costs of the Repayment Assistance Plan (RAP) vs. the Income-Based Repayment (IBR) plan for $180,000 in federal student loans at 8% interest.”
Career Move: “Estimate relocation and bar exam costs for a recent grad moving from Florida to New York, and suggest ways to save for them.”
Wealth-Building: “Show how contributing 6% to a 401(k) starting at an $85,000 salary compounds over 30 years with a 7% annual return.”

Notice that these example prompts request ballpark figures without disclosing any personal or identifiable information. In other words, the information given is essentially no different than information you might feel comfortable inputting into an online calculator.

This “asking for a friend” approach can allow you to include general income ranges, debt figures, time horizons, and goals, without attributing them to your specific situation. You should never input account numbers, account access point information, or other personally identifiable information like social security numbers, date of birth, etc. This generalized approach, coupled with managing privacy settings to opt out of training the models with your prompts, can reduce the risk of your prompts being accessed by bad actors.

Step 3: Verify, Verify, Verify

Always double check any important information AI provides. These models do make mistakes or oversimplify, so verify key details on official sites (for loans, StudentAid.gov) or with trusted organizations like AccessLex Institute^® and the ABA. If something sounds too good (or too bleak) to be true, a quick fact-check on a reliable source can save you from a costly misstep.

The Future of AI-Augmented Financial Information

When it comes to AI, the potential applications are endless. Based on current trends and capabilities, in the not-too-distant future we might imagine:

Personalized repayment modeling built into student loan dashboards.
Further integrated AI budgeting tools in banking and loan servicing apps.
Voice-based AI financial coaches that can talk you through monthly reviews.
The need for stronger privacy and compliance standards, as regulators decide boundaries for AI in financial services.

Innovations like these can make financial planning faster and more accessible but also increase the need for users to understand how their data is being used and how their advisors are using AI themselves.

A Supplement, Not a Substitute

No AI tool is a licensed financial advisor or Accredited Financial Counselor^® – these tools only give general guidance, not personalized advice. To use these tools effectively, be sure to ask questions, verify the answers, and know when to turn to a human. Law students can connect with Accredited Financial Counselors for free one-on-one financial coaching through AccessConnex by AccessLex^℠. Before making major money moves, consult a human expert for tailored advice, but AI can be a fantastic addition to your financial toolbox, helping you make confident, informed money decisions throughout law school and beyond.