Artificial Intelligence as a tool for reducing financial leakage from subscription-based spending
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The fast expansion of subscription-based services has changed the way people consume things as it provides ease and availability in many fields such as entertainment and productivity. However, this movement to recurring payment methods has a problem that we call “financial leakage.” This issue can be explained as a situation where people keep paying for unused, forgotten, or completely unnecessary subscriptions, which is a waste of one’s personal financial resources. This paper looks specifically into how Artificial Intelligence can be part of the solution to this problem by first recognizing the shortcomings of consumer spending and then pushing consumers towards more optimal behavior through AI interventions. By building on existing studies in the field and looking at what kind of results can be expected, this work shows that AI based tools such as pattern recognition, predictive analytics, as well as behavioral tracking can reveal issues that otherwise might have not been discovered through regular financial monitoring systems. The results indicate that AI’s capabilities in raising financial understanding, pointing out unnecessary expenses, and facilitating the making of great financial decisions are very promising. When functioning as a personal financial advisor, AI is capable of cutting down on superfluous spending and enhancing financial proficiency on a broader scale. This study makes a step forward in integrating behavioral finance with technological innovation, hence it sees AI as a tool but also as a main component in solving the escalating financial problem within the digital economy.
Keywords
Artificial Intelligence, Behavioral Finance, Financial Leakage, Personal Finance Optimization, Subscription Economy