The Future of Investing Has Arrived

Artificial Intelligence: A New Paradigm in Asset Management
Artificial Intelligence (AI) is infiltrating every aspect of our lives, from our workplace to our home habitat and soon our transportation. Practically every business is investing in AI with the financial sector being no exception. Large equity funds are already managing more than $10 Billion based on AI and machine-learning algorithms that are central to the investment decision making process. The AI paradigm has arrived. But the technology is still in it's infancy. Platforms, tools, algorithms and datasets are quickly evolving and as time goes on new and ever-more powerful applications will emerge. More importantly... there is a high level of growth occuring in AI-based Assets Under Management (AUM), and we expect that AI will dominate the investment landscape within the next decade.

Behavioural finance, a recent branch of economic studies, suggests that cognitive and emotional biases have a profound impact on the individual decision-making process, ultimately leading to irrational investing choices. This refutes the idea that rationality lies at the centre of investment decisions. The ideal solution is to allow a machine, devoid of emotion and personal bias, to make invesment decisions for us. But rules-based algorithms, typically based on quantitative analysis, have been employed by hedge funds for the last two decades.  The market is crowded and overuse has caused declining performance. Artificial intelligence transcends the previous paradigm by deciding which fundamentals, technical and sentiment data is important at any given time. Large amounts of complex and conflicting data is compressed into simple investment instructions.

The shift towards AI-based asset management will result in a new investing landscape. With any paradigm shift there are winners and losers. Some investment strategies will achieve extraordinary profits for investors, while others will stumble and fall by the wayside. What drives success may not be totally clear but motivation, goals, design an implementation are key factors. AI Stock Analyst understands these factors and intends to be a "winner", a leader in AI-based investment strategies, datasets and tools intended to empower Do-It-Yourself (DIY) investors such as yourself.