Artificial intelligence-based investment computer programs have been operational for a number of years. Programs of this nature focus on portfolio management, trading, and risk management. There are also Rabo-advisors on the market, which are computer programs that offer several suggestions for individual investors’ financial activity.
An effective approach of gathering information from a variety of sources, including news articles, internet posts, financial contracts, and social media, which can include incredibly useful information, can be used to construct risk management. The ability of computer algorithms to analyze satellite photographs in order to forecast grocery sales or crop yields in the future is a good example. We are able to better manage risk in our transactions because of the information provided, and it also makes speculation a little easier.
So far, artificial intelligence is not able to replace humans, but it can facilitate many processes. An example of this is the whole process of a transaction, which is divided into 3 stages: pre-trade, transaction, and post-trade. Pre-trade analysis involves using data to examine the characteristics of financial assets in order to predict future performance and transaction risks. Given that asset managers may want to take into account findings from pre-trade analysis together with risk assessments and customer preferences, this stage is typically overseen by humans. The information provided at this point automatically caused the transaction to be opened. Additionally, post-trade analysis needs human oversight too.
There is no doubt that the implementation of Al provides higher efficiency in investing industries. For example, artificial intelligence can collect, analyze, and identify data that can be hard to spot for humans. Algorithms can also improve the decision-making process, but so far they are not able to make decisions by themselves. I think that the amazing attitude towards artificial intelligence is the objective „thinking.”
It is stated that emotions are the enemy of humans when investing in the stock market, and you need to be able to control them or cope with them. We tend to overlook numerous facts and frequently tell ourselves lies because emotions trigger cognitive bias . But is artificial intelligence a solution? I have a strong belief that nothing will ever be able to completely replace human intuition when it comes to business or investment.
https://www.cfainstitute.org/-/media/documents/book/rf-lit-review/2020/rflr-artificial-intelligence-in-asset-management.ashx
https://strefainwestorow.pl/artykuly/analizy/20201020/sztuczna-inteligencja-inwestowanie-cfa
The use of AI in the agricultural sector is a really helpful way of predicting such an unpredictable market which can have great benefits to the whole community not only the investors which therefore should be the area that the major improvements of AI investment should be focused on. I support the claim that it is rather impossible for robots to overtake humans in overall investing, as for now they lack future planning and they might be prone to market speculations but using AI as financial assistants is in my opinion beneficial and make the process more efficient and less loss-making resulting from poor analysis