The fact that artificial Intelligence (AI) is now gaining traction and becoming a household name doesn't make the concept as new as it seems. It was first coined in 1956 by John Marcathy during a research project on Artificial intelligence. AI is what it is today, ever since the launch of ChatGPT in 2022 by OpenAI.

This chatbot has raised the bar for artificial intelligence and demonstrated that machines can actually "learn" the nuances of human communication and engagement. And now, people and businesses can do almost anything using ChatGPT: write codes, provide customer support, generate leads, create realistic images, write content, make mind-blowing designs, produce music or videos, answer inquiries about anything, write essays, or work out arithmetic problems. 

It is undeniable that technology has always pushed industries forward in this contemporary business environment. But AI has nevertheless become a truly game-changing innovation for startups, scaleups, and reestablished firms

Investors were initially keen on companies that could earn a fortune from AI. But the story has a different plot now; investors are on the search for methods to use AI to become better investors and increase their profits.

This article will examine the meaning of Artificial Intelligence, why investors should care about it, and go over five ways AI can be applied in investing, and five AI investment tools investors should be using.  

What is Artificial intelligence?

Artificial intelligence (AI) is the term used to describe the modeling of human intelligence in devices so that they think and behave like people. AI, in simple terms, is all about making computers smart and capable of doing tasks that usually require human thinking. For instance, problem-solving, learning, reasoning, perception, and interpreting natural language.

One popular application of AI is machine learning. This means training a computer with lots of information so it can figure things out on its own. For example, it can learn to recognize speech, recommend products to buyers, predict traffic patterns, recognize faces in pictures, or even identify different types of plants, among others. AI also shows up in computer vision, which is like giving computers eyes to "see" things. This is how vehicles like self-driving cars (where the car uses its "vision" to navigate safely) are made.

And then there's natural language processing, which lets computers understand and work with human language. The well-known ChatGPT by OpenAI is one such AI product. Equally, AI helps make robots smarter. Some robots are used in industries for tasks like painting or welding, while others are designed to keep our homes clean and secure, like those robot vacuum cleaners.

There are also neural networks. By neutral networks, we refer to AI systems inspired by the human brain's connections. This enables technologies like speech recognition and helps computers understand human language better. As a matter of fact, the application of AI is just about everywhere. And now we have AI that helps investors realize a higher ROI. 

Why should investors care about Artificial intelligence?

It is undeniable that AI has been making significant waves in almost all industries. Investors ought to care about AI because it has the potential to drive tremendous growth and profitability for businesses. Companies that harness the power of AI gain a competitive edge and increase their efficiency and productivity. 

Beyond just improving existing processes, AI enables companies to discover new opportunities and revenue streams. It provides insights through data analysis and helps businesses make better-informed decisions concerning their product offerings, services, marketing strategies, and employees, among others. 

It is not just about businesses, though. AI has a transformative impact on entire industries. Investors the world over are excited about AI's potential to revolutionize sectors like healthcare, finance, transportation, and many others. It has led to breakthroughs in medical research (with AI-powered health startups like Exscientia), created smarter financial systems, and even reshaped the way we commute and travel.

That's not all. AI also presents cost-saving opportunities for companies. By automating repetitive tasks, businesses can reduce labor costs and optimize their operations. This can result in higher profit margins and increased shareholder value, making it an attractive prospect for us as investors.

Additionally, investing in AI is not just about the immediate returns; it's about positioning oneself for the future. As technology advances, AI is expected to become even more pervasive, and companies that fail to embrace it may risk falling behind their competitors. Investors should look for businesses that are forward-thinking and incorporating AI into their long-term strategies. AI is the future.

Five ways AI can be applied to investing

Here are more practical ways investors can use AI to make more accurate investment decisions and realize a higher ROI.

Understanding Market Sentiment:

Market sentiment is a bit like a crowd's mood in the stock market. Sometimes, people get excited about a certain industry or a particular stock, and that makes the prices go up. Other times, they get worried or scared, and that brings prices down. This sentiment usually has a big impact on how the stock market behaves. AI can help investors figure out how people are feeling by reading lots of news articles, social media posts, and online stuff. For example, if people are excited about electric cars, AI can pick up on that and tell you it might be a good time to invest in electric vehicle companies.

Optimizing Portfolios with AI:

This is more about finding the best combination of investments to balance risk and reward. AI can be a perfect help-meet for investors here. It looks at all your investments, checks how risky they are, and suggests the best mix to get the most out of your money. For instance, if you have too much money in just one type of investment, AI might advise you to spread it out more to reduce risk.

Personalized Investment Advice from:

One of the best ways investors can make better investment decisions is to seek advice from experts to know if what they're about to invest in is a good choice. AI investment software is capable of performing this function. They know a lot about investing and can give you helpful advice. The advice they provide will not only be helpful but also based on your preferences and goals. For example, if you tell AI you're interested in green energy, it might recommend some environmentally friendly companies for you to look into.

Effective Risk Management:

When you play a video game, you want to avoid danger to stay in the game longer. In investing, it's similar. You want to manage risks to protect your money. AI can be your risk manager. It looks at past stock market data and learns from it. With that knowledge, AI can help you understand how risky your investments might be. For example, if you want to invest in a company that's been very risky in the past, AI will warn you and suggest being careful or diversifying your investments to be safer.

 Algorithmic trading:

These AI algorithms are like mini-computers that analyze massive amounts of data from the stock market at a lightning-fast speed. They look for patterns and trends that might be hard for humans to spot. For instance, imagine you're trying to find the best time to buy or sell a stock. AI can quickly look at lots of data and tell you the best moment to make your move. It doesn't get emotional or worried like humans, so it can make decisions based purely on data and facts.

Five AI investment tools you should be using  

In this session, we'll be looking at five AI-powered software tools investors can use to become better at investing.

Tickeron

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This signal software provides signals for a variety of trading platforms, including forex, cryptocurrencies, and stocks. In order to identify the best trading chances, AI is used to examine previous performance as well as real-time data. Tickeron is adaptable to many trading methods because you may obtain signals for both swing and day trading.

Features

Real-Time Signals: Tickeron generates real-time trading signals for various trading styles, including swing and day trading, in different markets.

Real-Time Patterns: The platform's Real-Time Patterns feed scans hundreds of cryptocurrencies every minute, searching for patterns that might indicate potential price movements.

Copy Trading: Users can follow professional traders and replicate their trades to potentially achieve similar results.

Tickeron offers several plans, including a free version and various paid plans with different features. Some of the paid plans include:

Swing Trader (Intermediate): $90 per month

Day Trader (Intermediate): $90 per month

Investor (Intermediate): $100 per month

Advisor (Expert): $250 per month

Zignaly

Zignaly works like a robot for you to trade cryptocurrency. It's simple to use, which even makes it ideal for newbies. The software does everything for you, so you don't need to spend much time studying it. Zignaly is able to perform its magic because it connects directly to well-known exchanges like Binance, KuCoin, and BitMex. You can choose between semi-automated and fully delegated trading modes for the bot.

Features:

Copy Trading: Zignaly allows you to follow and copy professional crypto traders, potentially replicating their success.

Direct Exchange Trading: The platform enables you to execute trades directly on your preferred cryptocurrency exchange from within the Zignaly platform.

Crypto Portfolio Tracking: Zignaly provides a comprehensive dashboard to track your crypto investments' earnings and performance.

Zignaly is a free trading platform; users pay exchange fees for their chosen cryptocurrency exchanges.

TrendSpider

This software can be regarded of as a personal assistant for creating and analyzing trading strategies. To assist you in making more informed trading decisions, TradeSpider combines technical analysis and cutting-edge machine learning. You may create, back-test, and improve your own trading algorithm using TrendSpider. For getting rid of biases and determining better entry and exit locations for your trades, it's a fantastic tool. You can comfortably trade in several markets without any restrictions on this software.

Features:

• Automated Trading Strategies: TrendSpider allows you to create, test, and optimize custom trading algorithms with minimal human intervention.
• Charting AI Systems: The platform's AI-powered charting tools assist in identifying winning chart setups and potential trade opportunities.
• Custom Automation: Users can set up specific automation parameters to suit their individual trading preferences.

TrendSpider offers three pricing plans:

Essential: $384 per year

Elite: $780 per year

Elite Plus: $1,620 per year

The annual plan offers two months of free service.

Trade Ideas

Trade Ideas, as the name implies instructs users on how to trade stocks. It offers a sophisticated app with a demo trading platform so that newbies can experiment without risking any real money. The software uses artificial intelligence (AI), notably its Holly AI engine, to make stock market trading and investing easier to grasp. Additionally, it links to your eTrade account, and enables commission-free execution of real trades. You have some recommendations to start with since trading Ideas also provides a newsletter with trading ideas.

Features:

• Simulated Trading: Trade Ideas lets beginners practice trading without using real money. This minimizes the risk of losing actual funds while allowing users to gain experience.
• Holly AI: The proprietary Holly AI software generates trade ideas and strategies to assist users in making informed decisions.
• Brokerage Plus: Trade Ideas offers seamless integration with eTRADE brokerage accounts, enabling commission-free trades.

Trade Ideas offers two pricing plans:

• Standard: $999 per month
• Premium: $1999 per month

Black Box Stocks

Black Box Stocks is an easy-to-use software that offers real-time alerts and aids in locating the greatest stock market possibilities. The software searches through more than 8,000 equities and 90,000 options to find stocks that meet your requirements. Even after the market closes, it provides a post-market scanner that lists the best-performing equities.

Features:

Pre-Market Scanner: Black Box Stocks' pre-market scanner delivers real-time alerts on specific symbols, enabling you to filter and find the best opportunities before the market opens.

Real-Time Quotes: The platform offers real-time quotes for scalping options, day trading, and swing trading.

Community Insights: Users can learn from top traders by observing and following their trade executions.

Black Box Stocks offers a 5-day free trial waitlist. After that, there are two plans available:

Monthly: $99.97 per month

Yearly: $959 per year

Remember that AI investing software is a powerful tool, but it's important to use it wisely. Always do your own research and learn about investing before making any decisions. These tools can help you become a better investor, but they are not guarantees of success.

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