Will AI help my strategy to perform better?

AI has progressed in leaps and bounds in the last few months, and its seems likely to become more powerful and influential as a technique in the coming years. So it’s natural to look at how it can benefit your investing approach.

There are many ways it could help, from parameter optimisation to trend predictions. There is a steep learning curve in terms of developing appropriate techniques for each problem, and ensuring the tools being made available are trusted.

It seems likely that the answer to the question is AI will indeed help, but implementing it well and with sufficient transparency will be key to its uptake.

There is definitely a way to go in making sure the tools available are trustworthy, but I think there is a lot of power in using AI to improve the research aspect of investing.

AI can help by processing large amounts of data quickly, to identify trends and patterns that may be difficult to detect manually. Ultimately if AI also has the potential to provide personalised investment alerts based on individual investment goals and risk tolerance, there is an exciting future for investing tools!

Fun fact about AI being used for investing purposes…

With the help of AI, some hedge funds are now using satellite images to predict the performance of certain retail companies. They analyse the number of cars in parking lots, the length of lines at drive-thrus, and even the frequency of trash pickups to gauge how well a particular company is doing. So, the next time you’re stuck in a long line at a fast-food restaurant, just remember that there might be a hedge fund out there somewhere analysing that data to make investment decisions!

(Bloomberg - Are you a robot?)

I agree… a long way to go, but the potential benefits for investors are profound. I’m looking forward to see how this space develops.

Ha! Now there’s a scary thought, I don’t want any hedge funds tracking my lunch habits.