The Investment sector is no exception when it comes to leveraging the superpowers of AI. Today, it’s not just the companies across the world in the Investment sector who are seeking every possible way, even the individual investors are making the most of this sought after technology. AI is extracting large data sets — whether its social media engagements, corporate observations, credit or debit card data and other data types. And with time, it is just getting advanced, giving a tough competition to human research analysts when it comes to infer the data and map out the patterns.
In this article, we are going to have a look at how artificial intelligence is making a significant transformation in the investment sector and how it is changing the way stocks are picked.
AI Outworking Human In Stock Picking
The use of technologies like artificial intelligence and machine learning in investment, not something new in the industry. Over the past couple of years, these technologies have helped companies and individuals solve the pain points when it comes to making an investment. And Jarvis is a great example of that.
Jarvis is one such company that is making a significant impact in the investing industry. It is an AI-powered that uses consumes information given by the customer and curates an individual portfolio that best suit the consumer’s needs and risk-taking capability. The company believes that each consumer is unique, so it feeds all the necessary information to the machine and uses a set of complex algorithms to generate a customised portfolio for all consumer.
But now, it has gone far more than creating individual portfolios for consumers. AI today is picking some of the top stocks and AIEQ ETF is the best example for that. According to a source, the artificial intelligence (AI) powered equity exchange-traded fund (ETF), has nearly doubled the gain of the S&P 500 so in 2019. The system looks at 6,000 stocks and millions of pieces of information on a day to day basis and curates a portfolio of 75 to 100 stocks.
But does this AI-powered system do it? The system uses something called EquBot. It is basically a stock picking algorithm that runs on IBM’s artificial intelligence platform, Watson. If in case you don’t know about IBM’s Watson, it is basically is a natural language processing based question-answering computer system. However, using algorithms it is also capable of analyzing massive amounts of data to create solutions in various business environments.
EquBot is designed and built in such a way that it is capable of mimicking an entire bunch of equity research analysts. Simply put, it can replicate the human ability to learn and make predictions. Compared to its human counterparts, this AI system detects patterns to make logical and correct inferences from a large amount quickly. That is not all, it can also work 24*7 / 365 days.
While many people are worried that AI would kill all human jobs, many are being optimistic about it. While many are worried to make an investment on stocks picked by an AI, many are making significantly handsome amount of money. Paradox will always be there irrespective of any domain. However, looking at the recent advancements and testaments, it seems that AI would be humans next best friend. It is prophesied that more improvised AI is, the more informed decisions are going to be.