AI-Based Wealth Advisory System using Machine Learning and Predictive Analytics for Personalized Budget Planning

Artificial Intelligence (AI) has emerged as a powerful driver of innovation in financial technology

(FinTech), enabling predictive analytics, anomaly detection, and automated advisory services. Yet, most personal

finance applications remain limited, focusing primarily on reactive expense tracking rather than proactive wealth

management. This paper introduces AI Wealth Advisor, an intelligent system designed to deliver personalized budget

planning, financial goal setting, and expenditure optimization using machine learning and predictive analytics. The

system integrates classification, forecasting, anomaly detection, and explainable AI (XAI) to provide transparent, real-

time financial guidance. Through Natural Language Generation (NLG), it translates complex analytics into simple,

actionable recommendations, accessible to individuals across diverse literacy levels. A pilot study showed promising

results: anomaly detection accuracy of 95%, a 22% improvement in savings, and enhanced financial literacy for 78% of

participants. In addition to performance improvements, the system addresses challenges related to privacy, fairness, and

user trust. This report details the methodology, research workflow, and results of AI Wealth Advisor, supported by

visual analytics. Findings indicate that the system can bridge the gap between advanced financial analytics and practical

usability, positioning itself as a scalable digital companion that empowers individuals to achieve sustainable financial

well-being.