AI and the future of investing

Is this the latest battleground in Financial Services Disruption?

Alex Speedie

May 14, 2025

Global equity markets are regaining ground as interest rates decline and fears of a protracted trade war abate. The S&P 500 has now climbed above levels seen in early April, prior to the imposition of tariff announcements, reflecting a broader revival in investor sentiment.

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At the same time, the rapid proliferation of artificial intelligence is beginning to reshape how investment insights are generated and delivered. While retail-facing applications still lag behind the sophistication of institutional platforms, the gap is narrowing as venture capital pours into AI-led financial technology.

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New York-based Reflexivity recently secured $30 million in Series B funding, led by Greycroft and Interactive Brokers, to accelerate development of its AI copilot for investment professionals. Hebbia, another firm operating in the same space, raised $130 million last year at a $700 million valuation, with backing from Index Ventures, Peter Thiel and Andreessen Horowitz. Its AI platform aims to enhance the speed and efficiency of investor research.

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The principal distinction between institutional and retail solutions remains access to non-public data. However, that advantage is increasingly being eroded by platforms such as RavenPack. Founded over two decades ago, the firm has expanded its product suite to serve a broader audience. Through Bigdata.com, users can generate automated research reports, build AI-driven stock watchlists, and query regulatory filings using models powered by Anthropic. While a basic version is available at no cost, subscription tiers begin at $50 per month.

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Elsewhere, Arta AI is aiming to go a step further by offering personalised investment recommendations aligned with an individual's existing portfolio, risk tolerance and financial goals, marking a significant shift toward bespoke financial advice at scale.

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Although many of these platforms were originally built for institutional users, retail access is broadening. The launch of Revolut’s trading app has the potential to significantly disrupt the market, joining an increasingly crowded field that includes Robinhood, eToro and Freetrade. These services are pitched at passive investors seeking smarter tools, and as AI integration deepens, the functionality of such platforms is likely to become more sophisticated.

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Robinhood, for instance, is preparing to roll out Cortex, an AI-driven feature for its Gold subscribers. The tool will generate real-time trade suggestions and stock-specific insights, catering to retail day traders seeking data-led guidance. Such developments signal the arrival of a new era of wealth management in which automation and AI underpin the investor experience.

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While institutional players will retain an edge through access to proprietary data and scale, the ability of AI systems to parse and interpret vast quantities of public information is levelling the playing field, particularly for retail investors focused on long-term strategies. Yet, with this democratisation comes risk. Increased algorithmic trading could amplify market volatility, with cascading effects triggered by automated stop-loss orders. In this context, the traditional warning to “let the buyer beware” seems more relevant than ever.

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Still, the broader implications for the wealth management industry are profound. As AI tools lower the barriers to entry and reduce reliance on intermediaries, pressure on fee structures is set to intensify. While top-performing asset managers and hedge funds are unlikely to be displaced, the prospect of sovereign wealth funds and large institutions internalising more of their investment processes is no longer theoretical. It is becoming ever closer to being a reality.

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AI and the future of investing

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