How Artificial Intelligence is Making its Way to the Markets


Artificial intelligence has made a huge name for itself in recent years, and continues to expand into different facets of life, changing the way many of us take on our day-to-day. In the past year, AI has seen significant growth as it expands into workplace use. By using this technology for business purposes, we can create more efficient ways of performing otherwise time-consuming tasks. But, although artificial intelligence can have its pros, it's not without its cons as well. While AI is capable of many things, as an investor, you may be wondering what its usage has been for the world of finance, and how it can benefit you.

AI in Finance

It's no secret that AI can be used for nearly anything, and the financial sector is no exception. Many financial tasks can be tedious, take a long time to do thoroughly, and may not always be free of error. But, when a trained computer system is available to assist, it can make things run much more smoothly with even better results. Take a look at these examples:

- Underwriting

AI in underwriting can speed up data collection, processing, and organization to reach a final analysis faster. Automating much of the underwriting process can free up time for more tasks, making it simpler and more efficient. As the AI can more accurately recognize patterns, it can also make the process more reliable.

- Risk management

While it can be impossible to predict market movements, AI can use historical data to discover trends and predict future ones, which can improve accuracy and allow for more precise information to be recorded and used to assess and manage risk.

- Data training

The ability to assess thousands upon thousands of documents in a short period of time in order to develop accurate and easy to understand information is a huge benefit of artificial intelligence in the finance realm. Data training software can be used to answer questions, determine potential price bumps or drops, and analyze data in a way that would not be possible to do manually, or take significantly longer.

- Robo-advisors

As an investor, you may struggle to know what stocks or ETFs are best for your portfolio, and how much you should be investing in it. An automated portfolio can do all of this work for you, with little intervention required. For those who don't have a lot of time to spend managing their investments, this can be a great way to be confident in your portfolio, knowing that the AI is helping you make the best choices for your financial situation.

These are only a few examples of what artificial intelligence is currently doing in the financial sector, but it doesn't stop there. New uses of AI are constantly in the works, and with the way things are going, it's possible that it becomes even more significant and widespread as time goes on. As mentioned above, artificial intelligence comes with risks. It can cause privacy concerns, distrust, potential misinformation, regulation issues, and fear of losing the importance of human connection. As it's still integrating itself into modern life, not all of the risks and concerns have been accounted for. But, this doesn't mean it can't be a great tool for many reasons. You don't have to use AI technologies, but if you choose to, it has the potential to simplify your life in many ways.

Webull Smart Advisor

Speaking of making life simpler, robo-advisors, as mentioned above, can be a great way to invest for those who are too busy to take the time to create their own portfolio. With Webull Smart Advisor, all you need to do is take a risk assessment, and the program will generate a portfolio on your behalf that is suitable for your risk level. This way, you can trust that the Smart Advisor has your best interests in mind and will provide you with a portfolio that fits your needs. If you're someone who would benefit from a hands-off investing experience, you may want to consider Webull Smart Advisor.

Want to know more about how it works? Check out this article on our robo-advisor!

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Disclaimer: Investment management and advisory services are provided by Webull Advisors LLC ("Webull Advisors"), an SEC-registered investment adviser. Investing involves risk, including the possible loss of principal invested. Past performance does not guarantee future results.

Investments in securities are Not FDIC Insured - Not Bank Guaranteed - May Lose Value.

Pros and Cons listed are not inclusive and do not intend to provide advice to any investor's specific situation.