Lawmakers Push AI as Tool to Close Financial Literacy Gap
Two members of Congress proposed using artificial intelligence to address widespread gaps in financial education across the country. Reps. Josh Gottheimer, D-N.J., and Young Kim, R-Calif., spoke at an Axios Financial Confidence event in Washington, D.C., on Tuesday about deploying ChatGPT and similar tools as accessible financial advisors.
Gottheimer said many Americans lack access to financial guidance. "You leave some out and they don't get the right advice or any advice whatsoever," he said.
Both lawmakers framed AI chatbots as free alternatives to paid financial advisors. Kim cited ChatGPT as a resource for learning about tax refunds and investment strategies. "It will tell you how to invest. It's a free advisor," Kim said.
Transparency Requirements Needed
The lawmakers stopped short of endorsing unrestricted AI use in financial services. Gottheimer called for banks to disclose when they use AI tools and how customer data is handled.
"The key is being transparent, knowing there's not some sort of big company getting some of a product that you're not aware of," Gottheimer said.
Kim raised concerns about AI enabling fraud. She introduced the PACE Act on Tuesday to streamline payment system registration and create what she described as a "faster, more efficient, more secure payment system."
Trump Accounts and Financial Education
John Hope Bryant, founder of Operation HOPE, discussed the Trump accounts program, which provides $1,000 from the Treasury to tax-free accounts for babies born between January 1, 2025, and December 31, 2028. The program launches July 4.
Bryant said the initiative supports financial literacy but should remain politically neutral to gain broad support. "If it has no edge attached to it and it just is something for everybody," he said.
Kim advocated making the accounts permanent. She said they could teach students to manage investments and maximize funds when they reach adulthood. "If something like this Trump account is working really well, why not make it into a permanent program?" Kim said.
Gottheimer also highlighted AI's role in workforce development, saying the technology will create jobs while enabling training for emerging positions.
Your membership also unlocks:
