skip to Main Content
Are You Ready To Replace Your Financial Advisor With AI?

Are you ready to replace your financial advisor with AI?

Summary: While approximately 25% of American retail investors are ready to start using different investment management strategies, there are many reasons why people should also start thinking about using AI in their investment strategy. Among them, AI avoids conflicts of interests, is easy to use, and offers low management costs while reducing risks of investment.  

Statistics observe constant decreasing confidence in banks and traditional financial institutions, and while approximately 25% of American retail investors are ready to start using different investment management strategies, no wonder why it might be the right time to ask yourself:

“Should I be investing with AI?”

AI can avoid conflicts of interests

Working with a financial advisor means working with someone who’s hours have to be paid. Of course, we all need money to live. There are, as a matter of fact, tons of advisors who strive to offer their clients with the best return possible, while being as transparent in their methods.

Investors need to be capable of exercising critical thinking about the way they manage a diversified range of investments. And while a majority is still commission-paid, or receive a percentage each time they drive your money into selected financial products, you need to be able to sense if they are working according to your own interests.

You can see how a conflict arises when a broker recommends you to invest in a fund that pays them a high commission but doesn’t necessarily better your financial strategy as a client” (Celaya, 2017).

If you are still unsure about your financial advisor’s motives, here’s a list of questions you might want to ask them next time.

Or, you can also decide to start investing with AI right away.

AI offers low management costs and peace of mind

Intelligence evolved to the point everybody can use it for its own profit. Humans started to create machines in order to help them with decision making. An example could be anti-lock braking system (ABS) found on cars nowadays, preventing the wheels from locking up and avoiding uncontrolled slipping –  providing its driver with greater stability.

Similarly, AI acts as a system analyzing data in order to optimize it for your own good (profit). Just like ABS provide drivers with greater confidence on the road, AI provides investors with the possibility to get a better control on their investments and to be confident about how to invest their money, at a lower cost.

AI portfolios are easy to manage and rely on predictive analytics and deep learning to protect investments against market crashes. It is affordable since it does not require to pay a third party in order to manage your assets, and all it does is work for you.

AI algorithms are constantly adapted to reduce risks of investments

Intelligence is essentially the capacity to adapt, learn and make better decisions. In the simplest form of intelligence, we could talk about cells which have proven to have basic intelligence, despite having a brain.

Then comes procedural intelligence – knowledge exercised in the production of a task. An insect like an ant is smart enough to do complex mathematical calculation to find its path, based on the moving position of the sun (Goldman, 2012). Ants possess only 0.0003% neurons in comparison to human, which means that their intelligence is procedural intelligence. In other words, they follow a recipe.

A financial organization has a front-office, middle-office, and back-office. The front-office is where trading decisions are taken; this is where creative intelligence can be found. The middle-office is where risk is decreased with the help of risk management procedures. Finally, the back-office is where the procedural intelligence provided by technology resides.  

Investment strategies developed with Aidvisors are the result of a simulated front-office, middle-office and back-office. It operates just like a financial institution constantly creating and adapting investment solutions. We run millions of algorithms on each stock every month in order to find out the best ones and to maximize their development.  

Everything is documented: every decision is justified, and our processes are automated as much as possible in order to provide you with impartial investment opportunities and consequently, with more profitable portfolios, adapted to your tastes.

Investing with AI has never been so easy nowadays. Are you ready for a change?

Sources:

https://www.theglobeandmail.com/globe-investor/globe-advisor/artificial-intelligence-coming-to-an-advisor-nearyou/article36896844/

https://en.wikipedia.org/wiki/Procedural_knowledge

https://www.wallstreetprep.com/knowledge/investment-bank-organizational-structure/

https://blogs.scientificamerican.com/thoughtful-animal/desert-ants-are-better-at-trigonometry-than-most-high-school-students/

https://www.betterment.com/resources/conflicts-of-interest-investing/

https://en.wikipedia.org/wiki/Anti-lock_braking_system

https://www.marketwatch.com/story/the-7-tough-questions-you-need-to-ask-your-financial-adviser-2017-09-15

Back To Top