While artificial intelligence can’t yet beat the broader market, it’s giving investors an edge in mid-market equities and bonds, and it just might pick the next market darling. Winner picking aside, lots of AI tools have emerged for retail investors, from the simple to the sophisticated.
At a basic level, investors can ask ChatGPT questions such as how to create an efficient portfolio. At a more technical level, algorithmic trading bots can be scripted to maximise gains in some market conditions. The bots can even talk to each other to work out the best strategies and use familiar trading risk management tools such as stops to get out of markets.