AI Has Powerful Potential to Make Investing Decisions Easier
As artificial intelligence continues to evolve, investors and financial advisers could use this powerful tool to help navigate the ups and downs of investing.


In today's fast-paced financial markets environment, investors face a consistent challenge: how to effectively navigate the risks and uncertainties while generating meaningful returns on their invested capital. However, a watershed moment is upon us as the development of artificial intelligence (AI) has emerged as a game-changer, equipping investors with valuable insights to steer through turbulent waters and make better-informed decisions.
AI holds immense potential to revolutionize the way we invest, and its impact is already being felt across the investment landscape. According to a 2023 study conducted by Accenture, 98% of financial advisers surveyed in the United States and Canada believe that AI is transforming how advice is created for, delivered to and consumed by clients.
This highlights the growing recognition that AI is reshaping traditional investment strategies and introducing new tools and opportunities for investors. We are standing at the precipice of a new era in investment practices, where AI's influence will likely play a central role in shaping the way investments are managed and advised.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A tool for enhancing financial advisory services
Artificial intelligence is a powerful tool that can help financial advisers boost their productivity and serve their clients better. AI can provide faster and more accurate insights while personalizing recommendations for investors. It is not a threat to financial advisers, but rather, a partner that can enhance their skills and value. According to Deloitte, AI leaders in financial services are more likely to report revenue growth, cost reduction and improved customer satisfaction. Therefore, embracing AI can give financial advisers a competitive edge and help them achieve their goals.
Personal finance is one of the areas where AI can help advisers, through providing 24/7 financial guidance via chatbots that use natural language processing to understand and respond to customer queries. AI can also personalize insights for wealth management solutions, such as robo-advisers, that can tailor investment portfolios based on customer goals, risk preferences and market conditions. While AI output is a great tool for enhancing productivity, human guidance will still be needed, particularly during processes like due diligence, as AI can be wrong at times. AI is a tool to reduce human error, not entirely eliminate it.
Optimizing investment choices with AI
AI serves as a crucial ally for investors in optimizing investment choices. Human decision-making is often influenced by emotions, cognitive biases and limited information, which can lead to suboptimal investment outcomes. By augmenting human decision-making with AI-driven recommendations, investors can reduce the impact of these factors and make more rational choices.
AI algorithms can identify patterns and trends that may be difficult for humans to detect, thereby uncovering potential investment opportunities that might have been overlooked. By analyzing large volumes of data and identifying emerging trends, AI can uncover opportunities in emerging markets, niche sectors or alternative investment vehicles, providing investors with a broader range of options to diversify their portfolios.
AI-powered investment platforms continuously learn from historical market data, improving their recommendations and adapting to changing market conditions and investor preferences. By harnessing the power of AI-driven analytics, investors can gain a deeper understanding of market dynamics and adapt swiftly to evolving market conditions. Although co-piloting with AI in investment decision-making can increase the probability of reaching investment goals, investors should be cautious about relying solely on AI recommendations without conducting their own research.
Harnessing AI for enhanced risk management
Investment decision-making has evolved and goes beyond fundamental and technical analysis. While intuition plays a role, AI has brought about a seismic shift, revolutionizing the way investors approach risk assessment and market analysis. By utilizing machine-learning and deep-learning techniques to absorb, analyze and process vast amounts of diverse data sets, AI is able to detect patterns in the market and predict future market movement with a higher degree of accuracy, surpassing limited human perception.
AI's advanced capabilities help managers and advisers rapidly carry out various tasks in financial planning, including the design and allocation of a portfolio. If AI detects signals indicating an imminent market decline based on various macro and market factors, it can automatically reallocate funds to more secure options, potentially averting losses for investors.
With the growing impact of AI solutions in financial services, investors now have access to a powerful tool that helps discern market moves in an environment characterized by heightened uncertainty. This level of foresight arms investors with a more proactive approach, allowing them to adjust their strategies, hedge against potential risks and downturns and seize emerging opportunities before they’re even apparent.
Boundless potential of AI in the investment landscape
In a world where AI is constantly pushing boundaries, its influence on the investment landscape knows no limits. We are just beginning to scratch the surface of AI's ability to impact investing processes, and its progression could offer endless possibilities.
While AI technologies are not yet surefire and foolproof, this technology continues to evolve and mature, and investors can look forward to harnessing its power to make more informed decisions, take advantage of opportunities and navigate the complexities of financial markets with greater confidence. AI holds boundless potential to reshape investing, as its transformative influence unravels age-old traditions.
Related Content
- Could ChatGPT and AI Change Delivery of Legal Services?
- Can Stocks Picked by Artificial Intelligence Beat the Market? 3 Stocks to Watch
- Don’t Hand Your Retirement Income Planning Over to AI Just Yet
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Francis Geeseok Oh is responsible for global sales and business development of Qraft's cutting-edge artificial intelligence technologies to financial institutions. He contributes to media such as Bloomberg, WSJ and Financial Times, discussing AI adoption in the asset management industry. Also, he has appeared as a guest speaker at AI lecture classes, including Oxford Said Business School, HKU and HKUST.
-
Investing Abroad Could Pay Off — Here's How
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Retire in Belize for Stunning Natural Beauty and Culture
Belize offers miles of protected land and ocean, a rich mix of cultures and a chill lifestyle. Best yet — the income requirement is just $2K per month.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
-
These Are the Key Tariff Issues to Watch in Coming Months
While they're not dominating headlines right now, tariffs are not over. Some key dates are coming up fast that could upend markets all over again.
-
Technology Unleashes the Power of Year-Round Tax-Loss Harvesting
Tech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.
-
The Fiduciary Firewall: An Expert's Five-Step Guide to Honest Financial Planning
Armed with education and awareness, you can avoid unethical people in the financial industry by seeking fee-only fiduciaries and sharing your knowledge with others.