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AI Transparency

Understanding how artificial intelligence works in Nova Net Worth

Last updated: February 26, 2026 • Version 2.0

Our Commitment to Transparency

At Nova Net Worth, we use artificial intelligence (AI) and machine learning (ML) to help you make better financial decisions. We believe you have a right to understand how AI affects your experience, and we're committed to being transparent about our technology.

This page explains what AI we use, how it works, and how you can control it.

TL;DR: We use AI to help you make better financial decisions. Your data is never sold or used to train external models. You control all AI features.

How We Use AI

1. Spending Forecasting

What it does: Predicts your future spending in each category based on your historical patterns.

Technology: LSTM Neural Network (Deep Learning)

Accuracy: 87% accurate on average

How it helps: Helps you plan budgets and avoid overspending

Your control: You can override any prediction manually

2. Anomaly Detection

What it does: Identifies unusual transactions that might indicate fraud or errors.

Technology: Statistical analysis + behavioral profiling

Accuracy: 92% detection rate, 3% false positives

How it helps: Protects you from unauthorized transactions

Your control: You can mark false alarms, improving accuracy

3. Financial Recommendations

What it does: Suggests ways to save money, reduce debt, and reach your goals faster.

Technology: Rule-based AI + personalization engine

Effectiveness: Average $2,400/year in identified savings

How it helps: Provides actionable financial advice

Your control: All recommendations are optional—you decide

4. Charlie (AI Financial Coach)

What it does: Answers your financial questions using natural language.

Technology: OpenAI GPT-4 + your financial data

Privacy: Your data is never used to train external models

How it helps: Provides personalized financial education 24/7

Your control: You can disable Charlie anytime in settings

Your Rights & Controls

Right to Explanation

You can see why AI made a specific prediction or recommendation.

Right to Override

You can manually adjust or ignore any AI prediction.

Right to Opt-Out

You can disable AI features individually or entirely.

Right to Feedback

You can report errors, improving the AI for everyone.

Right to Deletion

Deleting your account removes all your AI data.

Right to Human Review

You can escalate AI decisions to our team.

To exercise these rights: Visit Settings → AI Preferences

Privacy & Security

Your Data Stays Private

AI models are trained on YOUR data only—not shared with other users. We never sell your data.

No Sensitive Info in Models

We don't use names, SSNs, or account numbers in AI training—only transaction patterns.

External AI Partners

For some features (Charlie AI, receipt scanning), we use OpenAI's services:

  • Data sent to OpenAI is encrypted in transit
  • OpenAI does NOT use your data to train their public models
  • Data is retained for 30 days maximum (OpenAI policy)
  • We have a Data Processing Agreement with OpenAI (GDPR compliant)

Encrypted & Secure

All AI data is encrypted at rest and in transit. Access is logged and audited.

Limitations & Risks

We believe in honest communication about AI capabilities and limitations:

AI is not perfect: Our spending forecasts are 87% accurate—meaning 13% of predictions may be off.

Cannot predict life changes: AI doesn't know about upcoming job changes, pregnancies, or major purchases unless you tell it.

Requires data: AI needs 3-12 months of transaction history to work well. New users see statistical estimates instead.

Not financial advice: AI recommendations are educational, not professional financial advice. Consult a certified advisor for personalized guidance.

Regulatory Compliance

Our AI systems comply with international regulations:

EU AI Act: Classified as High-Risk AI System with full compliance documentation
GDPR: Right to explanation, deletion, and access fully implemented
UK FCA Consumer Duty: Fair outcomes, transparency, and consumer support
CCPA: California privacy rights respected

For regulators: Full technical documentation available upon request at compliance@novanetworth.com

AI Training Data Disclosure

In accordance with California AB 2013 (Generative AI Training Data Transparency Act), we disclose the following about the AI models used in Nova Net Worth:

Models Used

Charlie, our AI financial coach, is powered by OpenAI's GPT-4o-mini model, accessed via OpenAI's API. We also use specialized machine learning models for spending forecasting, category prediction, and anomaly detection — these are built and trained by Nova Net Worth.

User Data & Training

We do not use your personal financial data to train AI language models. Charlie runs on OpenAI's base GPT-4o-mini model with no custom fine-tuning using Nova user data. Conversations sent via the API are not used by OpenAI for model training, per OpenAI's API data usage policy.

Nova's ML Models

Our proprietary spending forecasting and category prediction models are trained on aggregated, anonymized transaction patterns. Individual users can opt out of contributing to model improvements in their privacy settings. These models do not generate text or provide financial advice — they power numerical predictions only (e.g., spending forecasts, category assignments).

Data Retention

AI conversation logs are retained for a minimum of 3 years for compliance and audit purposes. You can request deletion of your conversation history by contacting privacy@novanetworth.com, subject to applicable legal retention requirements.

Last updated: February 26, 2026. This disclosure is reviewed and updated quarterly.

Questions or Concerns?

We're here to help you understand our AI systems. Contact us:

General AI Questions

ai@novanetworth.com

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