How to Use AI for Investing

May 21, 2025 by Cynthia Wong Young Adults 0 comments

How to Use AI for Investing

Investing can feel overwhelming, a complex world of numbers and trends. If you have ever thought “I’m not good with numbers and investing.”, you are not alone. However, with the emergence of AI, we can now harness its power to assist us in our investment journey.

1) Preparation Work Before Using AI

Before using AI for investing, some preliminary thought is crucial to provide it with a clear ‘framework’ for effective use. AI can compute paths to a goal, but it is not a mind-reader.

A futuristic, minimalist compass in Empower2Free's orange, yellow, and grey. It emits a glowing, abstract pathway, symbolizing clear financial guidance and empowerment through AI.

– Define Your Goals: Be specific. For instance, “I want shares providing at least 5% dividends annually” or “I want an investment property generating at least 3% return annually”.

– Articulate Your Values & Risk Levels: Identify priorities affecting your decisions. “I only want to invest in companies that help women” is a stronger guide than “I want to invest in ethical companies”. The more specific, the better

Feeling stuck on goal identification? AI can help. Tell it what you know and want, and let it guide you in defining a relatable goal.

2) Using AI for Calculation and Analysis

AI excels at processing data, making it invaluable for supporting investment decision-making.

– Compare and Shortlist: You can prompt AI to process vast amounts of market data, shortlist investments based on your criteria, and then provide multiple ‘what-if’ scenarios. This delivers information for your decision making efficiently.

– Deepen Insights: You can prompt AI to guide you towards more comprehensive understanding for a fuller scenario building. For example when comparing investment properties, I prompted Gemini for comparable purchase prices and rental income. Then I had it walk me through potential returns, responding to its questions on expenses inputs.

AI’s strength here surpasses traditional spreadsheets like Excel. You can ask it direct questions and it generates responses. You do not have to build complex models for different scenarios. AI handles countless computations, visualising potential returns and risks without “breaking” the model.

3) The Human Touch Beyond AI

Investing is not solely about calculations. Human behaviour and judgment are key. AI is useful for analysis, but the human is ultimately responsible for decision-making.

– Contextual Prompts: AI relies entirely on clear prompts. Gemini, for example, couldn’t determine a specific property’s purchase price but could provide comparable prices of similar properties to help me gauge. AI works towards what you ask, and require for decision making.

– Iterative Refinement: More effective responses often require refining prompts as the chat progresses. AI’s initial generic responses improved significantly when I gave more context like specific investment products, liquidity needs and risk appetite for a $50 weekly investment.

A human hand interacting with a glowing, holographic screen displaying abstract orange and yellow data visualizations, symbolizing human guidance over AI in financial decision-making.

Ultimately, AI helps process factual scenarios – managing the numerical aspects of investing, offering clarity and efficiency. But the financial decisions are vested in the human, who leads with defined goals, personal values, and human wisdom. Balancing these numbers with real-life circumstances, one’s journey to financial independence is unique, best supported by both smart technology and genuine human connection. If you like to explore with us on how AI can assist your investment journey, reach out to book a call. We are here to empower you for fresh perspectives and gain confidence in managing your finances.