How AI can help manage cost of living pressures without giving away your data

Cost of living pressures are biting hard. In July 2025, inflation rose to 2.8 per cent and power bills climbed 13 per cent as rebates ended. That means less in the trolley, more stress about rent, and tough choices on bills.

Artificial intelligence (AI) might feel disconnected from these everyday struggles. Yet, it’s already quietly stepping into household budgets in useful ways.

From my three decades helping Australians understand tech, I’ve seen that when used sensibly, AI can ease pressure and respect privacy.

The hidden load women carry

For many women aged 25 to 44, financial stress isn’t just dollars in versus dollars out. It’s the mental load of stretching budgets, managing groceries and bills, and the added worry of keeping family data safe.

Privacy isn’t abstract. It’s about protecting identity, security and peace of mind. The good news? AI is no longer limited to big tech firms. It’s appearing in tools designed to make daily life easier.

Budget smarter without oversharing

AI-powered budgeting apps now do more than categorise expenses. They highlight spending trends and suggest adjustments. The best options process data locally or anonymise information before analysis.

For one young professional in Brisbane, the savings added up fast. Her budgeting app flagged two forgotten subscription services, worth nearly $40 a month. Cancelling them was simple, and the money went straight back into her grocery budget.

Devil’s advocate check: Not all budgeting apps are built with privacy in mind. If an app asks for excessive permissions or sells your data, it’s not worth the risk.

Cutting energy costs

Electricity bills remain a major pressure point. AI-enabled energy monitors are becoming more common, and many require little to no data sharing. They track usage in real time, showing when appliances are draining power or when small changes could lower costs.

A young family in Victoria recently cut their winter bill by 12 per cent after their monitor (SLA Home App) suggested switching off appliances overnight. Their data was not sold. It was simply used to deliver insight.

Devil’s advocate check: Energy monitors vary widely. Some may store data overseas or pass it on to providers. Always confirm where your information goes before you plug one in.

Community help that puts you first

Some of the most practical AI tools are local. Councils and community organisations are trialling chat assistants that explain eligibility for rebates, childcare subsidies and energy concessions. These services are built for support, not sales, so they do not track browsing or push unrelated products.

Even federal services are exploring AI to ease access. Medicare and MyGov have both piloted chatbots to cut wait times and guide users through forms. For women balancing work, family and finances, having an assistant that clears paperwork can free up valuable time and reduce stress.

Privacy is power

Convenience can tempt us to share data freely, but the risks are real. Identity theft, reduced bargaining power and the unease of being tracked are part of that cost. Protecting privacy means keeping control, especially for women already carrying a heavy load.

When weighing up any AI tool, ask:

• Does it collect more than it needs?
• Can I opt out of sharing?
• Is it clear who owns the data?

If any answer is no, find another option.

Small steps, real results

Pick one cost area that matters most: groceries, power or bills. Choose one AI tool aimed at that. Try it for a month, track the outcome and decide if it is worth it.

Sharing wins with friends or family builds confidence and know-how. Saving $20 a week on subscriptions or trimming 10 per cent from a power bill may not sound dramatic, but these savings stack up and can give back a sense of control.

The next generation of AI will lean more on on device learning. That means smarter forecasts for household bills, personalised shopping tips and real-time energy optimisation, all without data leaving your device.

AI is not a cure-all, but it doesn’t have to be a data grab either. Used thoughtfully, it’s a practical helper that reduces financial strain and frees up headspace. For women managing today’s cost pressures, that support is more than welcome – it’s empowering.