AI investing
Money Mixtape
Monday, 3 February 2025 - 6 minutes
Join Alpian today and get CHF 100 welcome bonus, use the code WRS100
Go to: www.alpian.com
Welcome back to Money Mixtape, where finance meets the rhythm of great music. In this episode, the hosts transition from last week’s cryptocurrency discussion—sparked by playing "Digital Love"—to exploring artificial intelligence (AI) in finance, all set against the backdrop of Zapp & Roger’s 1985 hit, "Computer Love." The conversation kicks off with a light-hearted nod to the season of love, yet quickly pivots to the practical applications of AI in personal finance and investment strategies.
The hosts explain that while AI isn’t yet a magic solution for wealth creation, it is already transforming the way we handle money. AI-driven apps are increasingly popular in regions like the US and Northern Europe, helping users manage daily finances by analyzing spending habits, suggesting cost-saving measures, and even identifying redundant subscriptions. Such tools are also making their way into Switzerland through digital banks and robo-advisors, offering prompt responses to routine financial inquiries such as portfolio performance and market conditions.
However, the conversation acknowledges the slower pace of AI development in finance due to the high stakes involved. Financial decisions have significant consequences, and stringent regulatory frameworks, like those set by the Swiss financial regulator, ensure that AI tools remain both safe and reliable. While AI excels in sifting through vast amounts of data—earning reports, news sentiment, and social media trends—to identify potential investment opportunities, the hosts caution that the real challenge lies in timing the market. AI can detect patterns, but it cannot guarantee that these patterns will persist, which is why AI-powered funds and ETFs often underperform market benchmarks.
Ultimately, the hosts express a healthy skepticism about AI’s ability to predict market movements. Unlike weather forecasting, where predictions have an 85% accuracy over the short term, financial markets remain too noisy and adaptive, making reliable forecasting an elusive goal.
Join Alpian today and get CHF 100 welcome bonus, use the code WRS100
Go to: www.alpian.com
