6 Investment Strategies Every Beginner Can Explore Using AI-Driven Tools

January 2, 2025

Getting started with investing can feel like diving into the deep end of the pool. How do you pick the right stocks or funds? What’s a good balance between risk and reward? Luckily, today’s technology makes it a lot easier to figure it out, even if you have zero experience.

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AI-driven platforms combine massive datasets, powerful algorithms, and intuitive interfaces, making investing more accessible for beginners. According to Reda Falih, fintech expert and CEO of Aries, an open-source trading app, “Finance can be quite daunting, and as a result overwhelming for many. This makes AI a potential guiding hand for beginners, one that can meet them wherever they are in their journey.”

Here are some of the ways AI-driven tools can make investing easier for beginners.

Robo-advisors can take the stress out of managing investments by using advanced algorithms to create and maintain customized portfolios, according to Investing.com. They assess factors like financial goals, timelines and risk tolerance, crafting investment strategies that match individual needs. This hands-off approach means novice investors can work on building wealth without the constant monitoring and decision-making that traditional investing often demands.

AI tools make it easier to analyze stocks, ETFs or bonds by presenting clear, data-driven insights. Beginners can explore options confidently with AI reducing the legwork. Falih explained, “There are plenty of tools that make it easier to review company financials and draw parables–some of my favorites are FinChat and Perplexity.”

AI platforms are breaking down barriers to alternative assets like crypto, real estate and private equity — options once reserved for institutions or the wealthy elite, says the World Economic Forum. By leveraging data and predictive analytics, these tools make it easier to assess trends, risks and potential returns. This expands the playing field for beginners, allowing them to explore diverse asset classes with confidence and discover new ways to build wealth outside the usual options

Market swings often push investors toward rash decisions, but AI tools are designed to remove the emotional element from investing, relying on data-driven insights to keep portfolios aligned with long-term goals, even during turbulent times.

For new investors, this steady, rational approach can ease fears about volatility. “These tools in a chat format are easily digestible, which will hopefully help people ease out of their emotions as they make decisions,” said Falih.

AI can make values-based investing more accessible for beginners by simplifying complex ESG factors and breaking them down into clear, actionable insights. Machine learning refines ESG scoring, while satellite imaging tracks environmental issues, making it clearer which companies align with investors’ personal values. This lets new investors build portfolios that reflect their ethical priorities without getting overwhelmed, according to Morgan Stanley.

AI doesn’t replace human expertise — it works alongside it. As Falih explained, “AI can be quite the buzzword, especially in finance, where for over a decade machine learning and algorithms have been put in place.”

He pointed to an example of an algorithm that mimics the S&P 500 ETF by purchasing individual stocks instead of the fund, automatically tracking its performance while offering potential tax benefits. Combining AI’s capabilities with human strategy allows investors to make smarter, more informed decisions.

AI is reshaping the investing landscape. With tools that deliver insights, remove emotional bias and automate complex tasks, even beginners can build portfolios confidently. As Falih said, “These tools are helping to democratize investing, making it less daunting and more accessible for everyone.”

By tapping into AI tools, investors — regardless of experience — can make smarter, more effective decisions.

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