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Can “AI” Help You Become a Better Investor?
For the past several years, artificial intelligence – or AI – has increasingly found a place in many walks of life. Almost certainly, you use some form of AI, whether it’s your time on social media, your use of mobile banking, the navigation system you rely on for directions, or any of the many other AI-driven applications relevant to your daily life. But AI has also become a significant part of the financial services industry. So, you might wonder if AI can help you become a better investor.
To begin with, what is AI? Essentially, it’s the ability of a computer program or machine to think or learn. Using complex algorithms (a set of rules, or steps), computers and machines can mimic many of the thought processes of human beings.
But how can you use AI to invest? And should you?
In the financial services world, many companies use AI to select investments for specific funds. On an individual level, you can work with an AI-powered “robo-advisor” to build an investment portfolio. These robo-advisors are typically quite affordable, and they generally follow proven investment principles, such as diversification, in making recommendations.
Yet, you are more than just the sum of your answers to a robo-advisor’s online questionnaire. Investing is a highly personal matter, which means that, in the following areas, you may well benefit from some human intelligence – and empathy:
Artificial intelligence will support many of your activities throughout your life. But when it comes to investing, a personal touch may never become obsolete.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Can “AI” Help You Become a Better Investor?Short /Radio version:
PSA: Can “AI” Help You Become a Better Investor?
Artificial intelligence, or AI, is now part of all our lives. It’s used in social media, our navigation systems, and many other applications. But can it help you become a better investor?
Many large financial services firms do use AI to select investments for specific funds. And as an individual, you could invest with an AI-powered “robo-advisor.” But investing is highly personal, so you may do better by working with a human financial professional.
For example, a robo-advisor probably can’t help you talk through tradeoffs as you prioritize your goals or provide you guidance on the options for a 401(k) when you change jobs. And it takes another person to know you well enough to understand how you might react to events such as sudden market drops – and help you keep your portfolio objectives in mind.
A financial advisor also can help you align your investment activities with your taxes and estate plans, and possibly connect you with other professionals in these areas.
Artificial intelligence will support many of your activities. But when it comes to investing, a personal touch may never become obsolete.
This is (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).
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