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Using AI for investing: Enhancing decisions with big data

  • September 13, 2023
  • 5 min read

Overview

  • Discover how FINQ utilizes diverse data sources and advanced analytical techniques using AI for investing.
  • Explore data-driven insights by FINQ to enable smarter, informed investment decisions.

 

Using AI for investing: transforming financial decisions

In February 2020, weeks before COVID-19 became a household term, the World Economic Forum boldly proclaimed that “AI has started a financial revolution.” By 2023, using AI for investing has transcended mere evolution, fundamentally altering the foundation of investment decisions. At the forefront of this shift is AI-based investing, a paradigm that combines the power of artificial intelligence and big data to enhance decision-making processes.

"98% of financial advisors now see AI as a pivotal tool in reshaping how advice is created for, delivered to, and consumed by clients."

An illustrative point: 98% of financial advisors, according to an Accenture survey, now see AI as a pivotal tool in reshaping how advice is created for, delivered to, and consumed by clients. At the heart of this change lies FINQ, a cutting-edge AI-driven investment platform epitomizing how big data and advanced analytics are sculpting the future of investing.

Big data and AI: A match made in investment heaven

The combined strength of AI and big data analytics opens doors to unparalleled insights, making investment decisions smarter and individually tailored. Here’s how:

  • Analyzing massive data pools: Together, AI and big data analytics uncover unique investment insights by analyzing large amounts of data and highlighting previously unseen patterns.
  • Enhanced investment recommendations: AI tailors recommendations, allowing investors access to data that is consistent with their own investment goals and risk preferences.
  • Boosted advisor productivity: AI chatbots provide 24/7 financial guidance, enhancing advisers' client service with round-the-clock assistance.
  • Pioneering investment strategies: AI and machine learning can analyze extensive data sets, sift through social media, and leverage crowdsourced forecasts to formulate strategies.

FINQ's data ecosystem: Sources of insight

FINQ is an AI-powered investment platform for everyone, where big data and science replace the biased human intermediary. But what is the engine that makes it go? The answer lies in data.

Data: The essence of FINQ

While the digital revolution has permeated most facets of our lives, the financial services sector lags. Eldad Tamir's answer to this gap is FINQ. Collaborating with a diverse team of experts, from behavioral psychologists to mathematicians, they birthed an AI-driven platform. This platform taps into an expansive data set covering global stocks, ETFs, and mutual funds. By leveraging dynamic S&P stock rankings, FINQ designs portfolios rooted in scientific insights, offering unmatched strategic precision designed for use by today's investors.

Analytical techniques: The engine behind smart investment decisions

Diving deep into FINQ's framework reveals a potent blend of analytical techniques that drive its investment rankings.

Algorithms unleashed

At the heart of FINQ's promise is its AI technology. More than just buzzwords, FINQ's tech employs AI and will harness machine learning, deep learning, neural networks, and reinforcement learning. These aren't just labels – they represent the evolution of FINQ's capability to offer ever-more accurate and timely rankings for informed investment decisions.

Crunching numbers

One of the strengths of FINQ is its ability to digest vast amounts of data from various sources, from traditional financial data to sentiment data of bloggers. This analysis, combined with the expertise of its seasoned leadership, ensures that FINQ's rankings stand apart.

Data-driven insights: Illuminating the path to informed decisions

In the information age, how does data redefine investment strategy? FINQ quickly answers this question by analyzing vast data sets to illuminate trends and see behind the surface.

Illuminating trends

Through a constant pulse on S&P stock rankings and three portfolios built to possibly outperform the market, FINQ aims to redefine AI-based investing.

"FINQ aims to redefine AI-based investing."

These sharp, data-informed insights craft investment strategies that are both on-point and timely for discerning investors.

Seeing beyond the surface

Diving deep into data, FINQ handles the heavy lifting, giving investors a comprehensive view. Not only does it offer daily rankings and easy-to-follow, actionable stock portfolios, but FINQ also sifts through historical data to uncover hidden market patterns and empower investors with newfound clarity and precision.

From data to decision: Navigating the journey

FINQ streamlines the journey from data collection to investment decisions, seamlessly connecting data analysis with actionable investment choices.

From raw data to streamlined decisions

Leveraging data for investment decisions is an intricate process encompassing collection, processing, analysis, and risk assessment. Amidst the complexities of sifting through vast financial datasets and interpreting market trends, the urgency of timely decision-making in ever-evolving market dynamics is evident. Yet, FINQ offers a refreshing respite: a platform that makes the meticulous art of investing intuitive.

Through innovative technology and keen insights, FINQ seamlessly integrates data analysis with actionable insights, ensuring every choice is informed and efficiently streamlined for the modern investor.

Real-world impact: Data-backed success stories

Many real-life examples of AI-based investing expose its tangible influence throughout the financial world.

  • Billionaire endorsements: Wall Street moguls like Stanley Druckenmiller, Philippe Laffont, and David Tepper have used AI to identify growth stocks, with investment decisions exposing their bullishness on AI.
  • Algorithmic trading surge: With AI, financial services optimize algorithmic trading, enhancing execution and reducing errors. This industry's potential value? A staggering $19 billion annually by 2024.
  • AI in asset management: The AI influence on asset management? A market worth $2.6 billion in 2022, is set to soar with a CAGR of 24.5% from 2023 to 2030.
  • Hedge funds embrace AI: A survey of 50 hedge fund managers found that 90% are using AI in 2023 to achieve their portfolio return objectives.
  • Leading investment embracing AI: Giants like BlackRock, Vanguard, and JPMorgan Chase utilize AI for efficient asset management. BlackRock Systematic employs NLP for sharper investment insights from diverse data sources.

Empowering investors with knowledge

FINQ aims to transform a sometimes vast and intricate investment experience with AI-based insights to offer clarity and education.

Empowering investors with knowledge, financial literacy, and data

At FINQ, empowering investors means equipping them with deep knowledge and guidance. This practice helps users understand rather than merely follow investment choices. Advanced data insights at FINQ enhance financial literacy, ensuring confident and insightful navigation of financial markets.

Looking ahead: The future of AI-based investing

The horizon of investment is shimmering with the potential of AI technologies. As we envision the future of AI-backed investing, several transformative trends come into focus:

  • Next-gen market adaptability: Advanced AI algorithms could enhance rapid market response, allowing investors to anticipate and adapt to emerging opportunities.
  • Evolution of forecast accuracy: AI's predictive capabilities might be refined further, offering insights into market fluctuations with heightened precision.
  • Democratization: Future robo-advisors could become even more intuitive and adaptive, potentially democratizing investment opportunities and making sophisticated strategies more accessible.
  • Proactive risk mitigation: AI could shift from merely assessing risks to potentially predicting and preempting them, offering foresight into unforeseen market challenges.
  • Uncharted data territories: AI could explore unconventional data sources more deeply, extracting transformative investment insights from overlooked areas.
  • Redefining ESG (environmental, social, and governance): As ESG factors gain traction, AI could play a pivotal role in aligning investment strategies with evolving global considerations.

Key takeaways

The fusion of AI and big data is reshaping the investment world, and platforms like FINQ are at the forefront. By diving deep into vast data oceans, AI is turning complex trends into user-friendly insights, simplifying decision-making for investors. But what's next? As we stand on the brink of this AI-driven revolution, one can't help but wonder. What we do know is the line between human instinct and machine intelligence continues to blur, and platforms like FINQ could lead the way, ushering in a new way to invest in capital markets.

Bobby’s introduction to stock options at a hi-tech firm left him intrigued and determined to expand his knowledge in finance. With his newfound passion, he pursued a Master’s in Finance from Harvard University, graduating with a 3.87 GPA and Dean’s List Honors. Since then, he has worked as a strategic communications and investor relations specialist catering to a diverse global client base that includes CEOs, CFOs, CFAs, CPAs, private equity executives, venture capitalists, global investment firms, real estate agencies, logistics companies, marketing agencies, startups, and publications. Bobby’s vast expertise and experience make him highly skilled at ghostwriting and producing content for major publications ranging from Forbes to the South Florida Business Journal. However, his byline has also appeared in LA Weekly, SFGATE, The Salt Lake Tribune, Wall Street Zen, Vision Magazine, Gold IRA Secrets, and Metro Manhattan Commercial Real Estate, among others.