In a period characterized by unexpected market outcomes and economic uncertainty, the investment world is facing many challenges as well as new opportunities. Dor Eligula, Co-Founder and Chief Business Officer at Bridgewise, argues that artificial intelligence (AI) is emerging as a central force in reducing this uncertainty and opening critical information to investors.
The investment world is known for its volatility and uncertainty, and the current period is no exception. Crises such as COVID, geopolitical instability and conflict, and rising inflation, can lead investors to be afraid and confused about the future of their investments. At the same time, there are many investors who see periods of uncertainty as an opportunity to explore new sectors and opportunities.
As part of my travels around the world, I’m exposed every day to the concerns and doubts of many investors who feel lost and helpless in the face of the enormous amount of information available and the increasing complexity of the market. Despite constant uncertainty, and perhaps precisely because of it, the need for technological tools based on data and innovation is more essential than ever. At this stage, AI offers a clear answer to challenges arising from external factors such as economic uncertainty, political and structural changes, and changing world attitudes.
That’s why, precisely in this challenging period, I believe that AI can serve as a primary tool for investors of all kinds, including professional portfolio managers, advisors, and also retail investors to optimize their work processes. AI-based technologies provide access to broad and in-depth information, while advanced data analysis enables more informed decision-making. The contribution of AI to the investment industry is expressed in several ways.
First and foremost, it enables the fast and accurate processing and analysis of large amounts of information. With the help of advanced algorithms and machine learning, AI can identify trends and potential investment opportunities.
Second, AI helps analyze market perceptions and investor behaviors. Through data analysis and market history, it can identify patterns of behavior and draw conclusions from market segmentation and in-depth information. In addition, AI can “explain” in simple and clear language to any investor or “participant” in the market the analysis of the data, which on the surface may seem complex or complicated – and make the “digestion” of this information much simpler for anyone, even those who do not understand the field.
Thirdly, AI can analyze the risk profile and preferences of each investor, and assist them in building an investment portfolio customized to their needs. It is important to use these tools carefully and responsibly while combining them with human knowledge and professional experience.
The capital markets are perhaps the most competitive “boxing ring” in the world. In this arena, it’s crucial to equip yourself with the best tools and strategies to ensure victory. Knowledge and insights stand out as essential “winning tools,” and AI can significantly improve your odds. Additionally, AI enhances the service quality of customer-facing advisors and relationship managers, further bolstering your chances of success.
It is important to note that AI technologies are not a substitute for the rich knowledge and experience of human investors and investment managers, but are an additional tool that empowers them and improves the decision-making process, in an informed, data-based way.
I believe that AI will play an important role in the field of investments in the coming years, mainly as a tool for dealing with the unknown, in a fascinating and complex world. As technology continues to develop, AI platforms will become more efficient and accurate, providing investors with essential tools to make more correct, informed decisions based on accurate and reliable information, in a time of uncertainty. Also, its ability to identify trends and behaviors in the market, predict the future, and manage risks can lead to improved investment results, increase performance and profits, and improve the chances of success over time.
