NEW YORK (AP) – The world of banking is set to undergo a significant transformation with the introduction of MoneyBot, a new financial services chatbot announced by Cash App. Scheduled for integration into its banking app this winter, MoneyBot promises to revolutionize how customers manage their finances. Unlike other existing chatbots, which typically handle basic tasks like changing an address, MoneyBot can perform complex actions such as creating savings plans, buying or selling stocks, and analyzing spending habits.
MoneyBot is part of a new wave of "agentic" AI, which goes beyond basic interactions to enable tools like ChatGPT to function as "AI agents." These agents can take actions online on behalf of users, opening the door to a more proactive approach in customer interactions. For instance, in addition to providing product information, agentic chatbots can facilitate purchases directly. Notably, Amazon has introduced Rufus alongside Alexa, both of which can assist customers in purchasing items. Other companies like Walmart and Microsoft are also developing similar capabilities with their own chat functionalities.
However, the rise of agentic AI is not without controversy. Recently, Amazon filed a lawsuit against the AI chatbot company Perplexity, claiming that its AI shopping agents misrepresented themselves as human buyers to access customer accounts unlawfully. Perplexity has denied the allegations, but the incident highlights the complexities surrounding this emerging technology.
While traditional banks have long utilized chatbots—examples include Bank of America's "Erica" and American Express's "Ask Amex"—many are cautious about adopting agentic AI. Concerns primarily revolve around the potential liabilities if a chatbot inadvertently makes incorrect purchases or is misused for purchasing activities outside of a customer's intent. Mark Birkhead, chief data officer at JPMorgan Chase, emphasized in a June interview that the safety of customer data is their top priority.
Contrastingly, Cash App is fully embracing the potential of MoneyBot. One standout feature is its ability to provide prompts and suggestions based on a customer's spending analysis. MoneyBot will offer independent recommendations and carry out transactions seamlessly within a single interface, rather than redirecting users to different sections of the website. This innovative approach is intended to position MoneyBot as the primary means for customers to interact with Cash App in the future.
For example, to track their largest spending categories and gather strategies for reducing expenses, customers can receive instant feedback from MoneyBot. If a user aims to save $1,000 for a vacation in six months, MoneyBot can generate an automated savings plan with minimal user input. To invest in the stock market, users merely need to confirm their request via the chatbot, which can facilitate transactions for stocks like Tesla or even cryptocurrencies like Bitcoin. However, MoneyBot will clarify that it does not provide investment advice.
A noteworthy aspect of MoneyBot is its capability to anticipate user inquiries based on their interaction history. Owen Jennings, executive officer and business lead at Block, indicated that the bot's deep understanding of users' behavior means it should ideally guide users effectively without them needing to formulate specific questions. Although MoneyBot has advanced functionalities, it still requires user confirmation for significant actions, which, in most cases, involves a simple button press or a quick affirmation in the chat.
Cash App executives explained that MoneyBot employs three distinct AI models, selecting the most suitable one for each customer query. Some models exhibit a friendly, eager-to-help tone akin to ChatGPT 5. During a demonstration, a Cash App employee humorously noted how MoneyBot highlighted his significant spending at Nordstrom, suggesting he might want to cut back on clothing expenses to save money.
Despite its advanced features, MoneyBot's capabilities are limited due to unresolved legal and privacy concerns. For instance, while it could potentially offer loans, it currently does not do so until any legal ambiguities are clarified. There are apprehensions regarding the influence of MoneyBot’s suggestions, particularly about potentially favoring certain financial products, like a buy now, pay later loan from AfterPay—owned by Cash App's parent company, Block—over competitors like Affirm or Klarna. For now, any loan requests directed at MoneyBot will redirect customers to a human representative.
As is standard with chatbot technology, MoneyBot includes a disclaimer stating that artificial intelligence can make mistakes, a caution that carries significantly more weight when it comes to financial solicitations than in casual interactions like recipe suggestions.
