The Clark Howard Podcast: AI Can Cost You / Waste Not When Dining Out Release Date: April 16, 2025

In this engaging episode of The Clark Howard Podcast, host Clark Howard delves into the complexities of artificial intelligence (AI) in consumer interactions and addresses the growing issue of food waste when dining out. Through insightful discussions and listener questions, Clark offers practical advice to help listeners navigate the modern financial landscape effectively.

1. The Hidden Costs of Relying on AI

Clark Howard opens the discussion by highlighting the potential pitfalls of overreliance on AI in consumer services. He shares a cautionary tale from Elliott.org about a consumer named Jason who faced deceitful practices from Expedia's AI chatbot.

Key Points:

• AI Misrepresentation: Clark explains how Expedia's AI falsely assured Jason of a full refund if he canceled his trip within 24 hours. Instead, Expedia retained half of his payment, citing conflicting terms and conditions.

  *"Clark Howard [01:05]: 'Expedia told him to pound sand and said, tough, you're out half your money now. This is crazy.'"

• Consumer Trust Issues: The discrepancy between AI promises and actual terms can lead to significant financial loss and frustration among consumers.

  *"Clark Howard [05:35]: 'There's a lot of stuff that's being worked on. And just because it sounds so authoritative doesn't mean you take it as actual fact.'"

• AI Reliability: Clark emphasizes that while AI can provide accurate information, it can also mislead users, urging listeners to verify AI-generated advice before making decisions.

Testing Different AIs: Clark and his team actively test various AI platforms like Google's Gemini and ChatGPT to understand their strengths and limitations. He notes the inconsistent accuracy of these tools, which can sometimes provide authoritative-sounding yet incorrect information.

2. Listener Questions and Expert Advice

Clark takes time to address several listener inquiries, providing tailored advice on diverse topics ranging from innovative phone plans to credit card rewards.

a. Mode Phone: Earn While You Use Your Device

Listener: Jennifer from Michigan inquires about the legitimacy of the Mode Phone, which offers monetary rewards for using the phone, listening to music, and playing games.

Clark's Response:

• Legitimacy: Clark confirms that Mode Phone appears legitimate, offering an Android phone with a unique operating system that rewards users for various activities. However, he cautions that rewards are modest and highlights existing complaints about payout issues.

  *"Clark Howard [07:36]: 'It's not a lot of money. It seems legit. And there are complaints about people saying I didn't get my money, whatever.'"

• Recommendation: He suggests testing the service to ensure it meets expectations and sharing the experience on his platform to inform others.

b. Class Action Settlements and $1 Virtual Credit Cards

Listener: Micah from Maine expresses frustration over receiving $1 virtual credit cards from class action settlements that are practically unusable.

Clark's Response:

• Usage Tips: Clark advises prepaying utility bills or other small expenses to utilize the virtual card funds, thereby avoiding the "breakage" where consumers lose the value.

  *"Clark Howard [10:04]: 'Even the $1, you can prepay on a lot of things. You might be able to prepay on your cell phone bill...'"

• Industry Insight: He explains that the design of these payment methods often leads to consumers forfeiting the funds, benefiting the issuing entities instead.

c. Credit Card Rewards: Points vs. Cash Back

Listener: James from Oklahoma seeks advice on whether to accumulate points for flights and upgrades or opt for a 2% cash back Mastercard.

Clark's Response:

• Preference for Cash Back: Clark advocates for cash back, highlighting its straightforward value and lack of restrictions compared to points, which often come with blackout dates and limited redemption options.

  *"Clark Howard [10:55]: 'I love 2% cash back because they don't tell you there are blackout periods to get your 2% cash back.'"

• Exceptions: He acknowledges that frequent travelers might benefit from points if they leverage them effectively for significant rewards.

d. Cash App Debit Card Issues

Listener: Heather from Mississippi reports receiving a Cash App debit card with incorrect details and unauthorized usage, raising concerns about potential identity fraud.

Clark's Response:

• Immediate Actions: Clark recommends monitoring credit reports through services like Credit Karma and re-establishing contact with Cash App for resolution.

  *"Clark Howard [19:07]: 'If you have a credit Karma dashboard, you can see what's going on with two of your reports.'"

• Caution: He advises persistence in communicating with Cash App, despite initial unhelpful responses, to prevent further misuse of the debit card.

e. Booking Flights to Vietnam: Best Fare Strategies

Listener: Bob from Georgia plans a trip to Vietnam in January and seeks advice on the optimal time to book flights for the best rates.

Clark's Response:

• Fare Tracking: Clark suggests setting up fare alerts on Google Flights for multiple departure points, emphasizing that international fares often have unpredictable patterns.

  *"Clark Howard [21:13]: 'Set up fare alerts for travel next January to Vietnam from your home airport...'"

• Cost-Saving Tips: He recommends booking from the West Coast for cheaper fares (~$700 round trip) compared to the East Coast (~$1,100 round trip) and considering additional stopovers to further reduce costs.

f. Determining Insurance Coverage for Condos

Listener: Ann from Tennessee owns a condo and seeks guidance on determining appropriate insurance coverage for the interior based on her condo association's "studs out" policy.

Clark's Response:

• Understanding Responsibilities: Clark advises reviewing condo documents to identify which parts of the property the owner is responsible for and consulting with an insurance expert to ensure adequate coverage.

  *"Clark Howard [24:46]: 'Your insurer is a big insurer of homes and condominiums... They'll tell you what documents they want from your homeowners association.'"

• Customized Coverage: He underscores the importance of tailored insurance policies that reflect the specific terms outlined by the condo association to protect against potential liabilities.

3. Americans Waste $330 Annually by Not Taking Leftovers from Restaurants

In a thought-provoking segment, Clark addresses a diminishing trend in Americans carrying leftovers home from restaurant meals, highlighting significant financial implications.

Key Points:

• Industry Report Findings: Citing a New York Times article, Clark reveals that the average American discards over a pound of restaurant food weekly, equating to approximately $330 annually.

  "Clark Howard [14:31]: 'This is really not where we're meant to go spending..?'" (Paraphrased for clarity)

• Economic Loss: He emphasizes that the discarded food represents wasted money, suggesting that taking leftovers can effectively extend the value of a meal already paid for.

  *"Clark Howard [17:18]: 'Average American throwing away from restaurants $330 a year. Who couldn't use $330 a year?'"

• Cultural Shift: Clark speculates that social perceptions or misconceptions about needing to finish every bite might contribute to this waste, encouraging listeners to embrace leftovers as a cost-saving practice.

• Listener Interaction: A listener shares personal habits of carrying leftovers, reinforcing the practical benefits of the practice.

4. Upcoming Segment: Clark Stinks

Clark concludes the episode by promoting the upcoming "Clark Stinks" segment, where he candidly critiques and reevaluates past advice or current practices to ensure continuous improvement in serving his audience.

*"Clark Howard [24:46]: 'We were only doing Clark Stinks every other week. And then by popular demand, listeners and viewers demanded that we reinstate a weekly Clark Stings...'"

Conclusion

This episode of The Clark Howard Podcast offers listeners a deep dive into the unintended consequences of AI in consumer transactions and sheds light on everyday financial leaks, such as wasted restaurant leftovers. Through real-life examples and expert advice, Clark empowers his audience to make informed decisions, save money, and avoid common pitfalls in the evolving financial landscape.

For more insights and personalized advice, listeners are encouraged to submit their questions at www.clark.com/askclark.