Learn how to use artificial intelligence in your investments

According to Goldman Sachs, artificial intelligence (AI) is spreading across all sectors of the economy. Goldman Sachs predicts that $200 billion will be invested in this technology by 2025.

One of the most transformative sectors is the financial services sector, as portfolio managers begin to use general artificial intelligence tools to help them collect and analyze data to find the best returns. If big funds are using widespread AI, why not use it to achieve their goals?

Higher profits?

In fact, AI can help the financial sector in many different business areas, such as product personalization and automation of support activities or risk and fraud management. However, one of the most interesting options is its ability to improve the decision-making process when managing a portfolio, as it can help identify opportunities to buy and sell shares.

How to use artificial intelligence for your investment portfolio

AI tools are critical to achieving alpha status that exceeds our benchmarks.
For example, if we wanted to invest in Spanish companies, the reference index would be the Ibex 35, so any return we achieved in the Ibex would be alpha.

All professional investors have implemented these types of solutions, so individual investors should also start using them to find that alpha. Platforms like Spark Genesis AI They are a good gateway to this fascinating world.

First, AI helps you choose actions. Stock exchanges process millions of information about the assets that investors want to buy or sell, so choosing between millions of stocks can be chaotic. This requires the use of “action screeners”, so you can start using those that include artificial intelligence to display data, graphs, or have creative ways to interact with users using general artificial intelligence, such as ChatGPT.

An innovative tool for checking quotes is FinChat.io, which has a chat feature that allows you to type questions and get answers in a similar way to how ChatGPT works.

For example, in the free version you can ask it to compare the latest annual results of Meta (Facebook) and Alphabet (Google). So, if you are interested in investing in one of these two technologies, you can simply write to them to organize the information you need, analyze it and decide to invest in this company or the other. Thanks to this, this tool can save time searching for data on the websites of these companies and collecting it.

Here is the answer he gave when buying Meta and Alphabet: “Meta Platforms, Inc. has a higher operating margin of 34,41% compared to 27,42% for Alphabet Inc. This means that Meta Platforms, Inc.” was able to generate higher revenue growth and maintain higher operating margins than Alphabet.”

Generative AI for stock screeners

A good tool for displaying graphs is finviz. In the free version, this tool allows us to use a variety of filters to create graphs that help us identify stocks that fit our investment objectives.

For example, you may be asked to find, among others, companies in the technology sector that have a price target X percent below or above the price target and that are within the market capitalization range.

In this way, artificial intelligence will sort the information on the finviz platform, creating lists according to our preferences. You can even customize many settings and set alerts to inform us of buying or selling opportunities.

The tool also provides charts containing various information to help you manage your portfolio.

Another very interesting tool to consult stocks is Ainvest.com, which has a chat room

They can enter parameters about what we are looking for to obtain the information we want. For example, ChatGPT can be asked to perform similar activities and in return offer it to businesses.

C3.ai and amesita. These are examples of AI-powered tools to identify opportunities, but that's about it.

The revolutionary technology also offers more options for portfolio management.

Building a portfolio, i.e. identifying trends: the potential of AI

Helping with stock selection is one of the many ways artificial intelligence can help. This technology can also be very useful to identify objectives within your investment portfolio, based on our needs, risk management and economic forecasts.

Try to identify trends

Creating a focused portfolio is one of the most important processes investors must go through. This portfolio serves as a guide to achieve the desired objectives.

You can use robo-advisors like Wealthfront or Betterment for this task.

There are others who want to use “machine learning” techniques to identify trends such as AI for Alpha or Wealthbuddy, although these solutions are paid. Also Simply Wall St.

There are many different portfolios that emulate great investors like Bill Ackman and others. They are updated using artificial intelligence.

These are just some of the AI ​​tools that are emerging to replace outdated tools.

In the world of investing, information is power. The big funds are already doing it. Allow these solutions to find alpha versions for your future investments. You can start using them to manage your portfolio like a pro.