Investing is one of the most quantitatively intensive fields there is. Still, it is cluttered with old-school models that are simple and heuristic-based. The new-age millennial investors recognize the power of artificial intelligence. They are increasingly looking to utilize the power of AI to democratize the world of investing and get access to tools to invest, like professional Wall Street investors.
Artificial Intelligence has had an enormous impact and has surpassed humans in many fields, from gaming to computer vision to self-driving cars. Artificial Intelligence can create a competitive edge to extract actionable insights in the complex framework of the financial markets with their ever-changing dynamic nature, hundreds of noisy factors affecting performance, and non-linear interactions. There are no areas in investing, from modeling returns to reducing risk to even reducing costs, where AI does not have a better solution than a human.
The first users of AI in investing were the famous global hedge funds, with mathematicians like Jim Simons using proprietary AI models to make a killing in the market in the last half-century. But now, the use of AI is becoming more and more mainstream. Robo-advisors use automated, algorithm-driven models to analyze the markets and optimize our investments. So AI is slowly but surely coming everywhere.
In today’s day and age, AI-driven investing provides a transparent and flexible way to invest for the new-age investor who wants to be in the driver’s seat. AI-driven advisors solve critical problems that the investor faces with these tools, from asset allocation to stock selection to reducing trading costs. Globally asset managers, brokerages, hedge funds, and Robo-advisors are increasingly adapting to AI, and the research work on the subject is growing in leaps and bounds.
Continue reading: https://timesofindia.indiatimes.com/blogs/voices/how-can-artificial-intelligence-be-used-in-investing/
Artificial Intelligence has had an enormous impact and has surpassed humans in many fields, from gaming to computer vision to self-driving cars. Artificial Intelligence can create a competitive edge to extract actionable insights in the complex framework of the financial markets with their ever-changing dynamic nature, hundreds of noisy factors affecting performance, and non-linear interactions. There are no areas in investing, from modeling returns to reducing risk to even reducing costs, where AI does not have a better solution than a human.
The first users of AI in investing were the famous global hedge funds, with mathematicians like Jim Simons using proprietary AI models to make a killing in the market in the last half-century. But now, the use of AI is becoming more and more mainstream. Robo-advisors use automated, algorithm-driven models to analyze the markets and optimize our investments. So AI is slowly but surely coming everywhere.
In today’s day and age, AI-driven investing provides a transparent and flexible way to invest for the new-age investor who wants to be in the driver’s seat. AI-driven advisors solve critical problems that the investor faces with these tools, from asset allocation to stock selection to reducing trading costs. Globally asset managers, brokerages, hedge funds, and Robo-advisors are increasingly adapting to AI, and the research work on the subject is growing in leaps and bounds.
Continue reading: https://timesofindia.indiatimes.com/blogs/voices/how-can-artificial-intelligence-be-used-in-investing/
