Cash App is launching MoneyBot, a new financial chatbot powered by "agentic" AI, designed to take advanced actions for users beyond typical chatbot functions. Unlike existing chatbots that handle basic tasks, MoneyBot can create savings plans, buy or sell stocks, and analyze spending habits. This advanced AI capability allows the chatbot to act as an "AI agent" that can perform online actions on behalf of the user, a feature also being implemented by companies like Amazon and Walmart.
MoneyBot's integration into the Cash App banking app this winter will offer users personalized financial insights and automated solutions. It analyzes a customer's transactions to provide recommendations on how to manage spending and can automatically set up savings plans for specific goals. The chatbot also facilitates stock and cryptocurrency trading directly within the app, though it clarifies it does not offer investment advice.
While Cash App is embracing agentic AI, traditional banks have been more hesitant due to concerns about liability and potential misuse. Cash App executives, however, believe MoneyBot will become the primary way users interact with the app, anticipating user needs and providing instant solutions. Though MoneyBot requires user confirmation for financial transactions, this often involves a simple button press.
Despite its advanced capabilities, MoneyBot has limitations due to ongoing privacy and legal considerations. It cannot offer loans, and there are potential concerns about biased recommendations, such as favoring AfterPay, a sister company, for "buy now, pay later" services. Users requiring loan assistance are currently directed to human agents. A disclaimer reminds users that, like all AI, MoneyBot can make mistakes.
