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Joshua Rodriguez
Joshua Rodriguez
Articles (52)  | Author's Website |

Artificial Intelligence Is Changing the World of Investing

AI is leading to an evolution in how we do just about everything

December 24, 2018

Technological innovation has changed the way we do many of our day-to-day tasks. From going to the store to researching a new medicine or communicating with friends, if we didn’t have the technology that we have today, we would be doing it all differently. In the world of finance, technology has changed quite a bit as well. After all, if it wasn’t for the internet, we would still be writing checks and forced to go to a bank when we wanted to invest. Now, there’s a new wave of technology, and it is leading to yet another evolution in how we do things. That new wave is artificial intelligence (AI).

What is artificial intelligence?

Artificial intelligence is defined asThe theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.

Essentially, artificial intelligence is a technology that shows some sign of intelligence by completing a task or a multitude of tasks that generally require human intervention. In terms of the investing community, artificial intelligence is known for finding buying or selling signals in the market, researching market data, and more.

AI in the investing world

As the internet has led to an evolution in how we invest, artificial intelligence seems to be doing the same thing. Here are just a few examples of how that’s happening:

  • Providing real-time data: AI is being used to provide data in ways that only humans could in the past. In fact, new AI, known as Ted, was launched last week. Ted combs through the available financial data online for tickers. Once he combs through the data, Ted writes an article and publishes it for the world to see.
  • Providing alerts: Another way that AI is being used to generate gains in the market is through alerts. Trade Ideas has an AI named Holly. Holly is an AI that looks at what happened in the market when it closes. She looks through social, fundamental and technical data and builds multiple strategies around it. The following day, strategies with an expected success rate of 60% or above and a profit factor of two-to-one are given to users.
  • Services to institutions: AI is even being used by big banks to provide services to their institutional clients. In fact, through algorithm-based AI, the largest bank in Japan is providing services to its institutional customers.

The evolution is only beginning

The truth is that AI technology is still quite young. As such, we have not unlocked all of the secrets, capabilities and implications of this revolutionary technology. Who knows -- one day, we might just tell an AI to do our investing for us with incredible success. After all, it is already leading to cars that can drive us to the store while we watch a movie. When it comes to the financial world, we could be looking at investing very differently 10 years from now as a result of the introduction of AI into the space.

Final thoughts

As with the internet, artificial intelligence has the potential to change how we do many things in our lives. We are already seeing the use of the technology in the financial industry, and that use is likely to grow going forward. It will be exciting to see how advancements in AI lead to a better understanding of the market, and therefore, larger gains for investors and traders alike.

About the author:

Joshua Rodriguez
Joshua Rodriguez is the owner and founder of CNA Finance. His work has been featured on various websites and mainstream news outlets. Read all relevant disclosures and get in touch with Joshua by going to his website, www.CNAFinance.com.

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