Artificial Intelligence which is popularly known by its abbreviation AI has become of the most powerful technologies that we have today. It’s used in a variety of settings including, but not limited to: healthcare, security, data accounts, etc. Lately, it’s also started helping retail and institutional investors. The following are some of the ways how it’s going about that:
Robo advisors are AI-powered programs that guide people making investments. There is a slew of options in the market-leading people to often compare services like Wealthfront vsBetterment to learn about features like new investment options, portfolio rebalancing tools, retirement planning, etc. These programs have an AI program to take care of heavy analytics.
Artificial Intelligence has greatly enhanced customer service by giving rise to smart chatbots. For instance, there are AI interfaces and bots like Eno and Cleo that can have conversations with the customers and answer basic queries. Since many queries that are raised today are repetitive, bots can efficiently identify this and respond.
Online investment tools and services have made it easier for retail investors to create and maintain portfolios on the go. However, security has always been a concern for them as they need to protect their financial and personal information from hackers and various kinds of cyberattacks. This problem is now tackled with the help of AI as advanced programs can easily detect anomalies in transactions and unusual investment habits to prevent frauds and identity
Human advisers can be quite knowledgeable and offer sound investment advice. However, their services can also be expensive which is why many people can’t afford them at all. AI-based programs, on the other hand, are easily affordable. They don’t require the users to invest a minimum sum which can vary depending on financial position.
Portfolio rebalancing is important if you want smoother investment returns, review mutual funds in your portfolio with ease, and more. The problem is that many investors struggle with the idea and often spend long periods of time without adjusting the portfolio. However, AI is today helping them succeed in this endeavor by offering auto-rebalancing services. With this, a portfolio can be readjusted to a fixed allocation whenever its values change.