From Social Media to AI: Retail Investors Adopt Artificial Intelligence for Research

<p>In an era of unprecedented access to information and
technology, retail investors are carving a new path by embracing artificial
intelligence (AI) for investment research. This is according to a recent survey
conducted by Public.com, which highlighted how investors are incorporating AI
into their decision-making process.</p><p>Public is an investing
platform that lets members invest in stocks, Treasuries, ETFs, crypto, and
alternative assets with deep fundamental data and custom analysis powered by
AI. The platform surveyed 2,000­+ retail investors and reviewed investing flows
throughout the year to compile its report for the first half of the year.</p><p>Revolutionizing
Research? AI Takes Center Stage</p><p>A noteworthy finding from the report reveals that
investors have amplified the diversity of their portfolios by a staggering 25%
year-over-year, encompassing assets such as stocks, ETFs, Treasury bills,
<a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a>, and alternative investments.</p><p>Retail investors are not
only diversifying their portfolios but are also revolutionizing their research
and due diligence practices. The report reveals a remarkable paradigm shift,
with nearly 19% of retail investors already incorporating AI into their
investment research process.</p><p>Besides that, the report
indicated that trust and credibility have taken center stage, with 69.4% of
investors prioritizing these factors in their information sources, marking a
substantial increase from the previous year. The integration of AI in research
is subtly replacing the significance of social media as a primary
decision-making channel.</p><p>However, while AI
continues to reshape investment research, the role of social media as a
decision-making channel persists. Public.com’s findings reveal that 16% of
investors consider social media buzz as an important signal in investment
decisions. Additionally, cultural trends, whether positive or negative, wield
powerful influence in triggering trading responses.</p><p>AI and Human Touch in
Trading Evolution</p><p>In June, <a href="https://www.financemagnates.com/institutional-forex/technology/the-role-of-artificial-intelligence-and-machine-learning-in-forex-b2b-solutions/" target="_blank" rel="follow">Finance
Magnates</a> published a
report highlighting how AI and <a href="https://www.financemagnates.com/terms/m/machine-learning/">Machine Learning</a> (ML) were <a href="https://www.financemagnates.com/institutional-forex/technology/the-role-of-artificial-intelligence-and-machine-learning-in-forex-b2b-solutions/" target="_blank" rel="follow">ushering
in an era</a> of advanced
data analysis and pattern recognition within the forex B2B solutions. The
foreign exchange market generates an immense volume of data, encompassing price
fluctuations, economic indicators, news, and trade sentiments.</p><p>AI and ML algorithms now
possess the capacity to instantaneously process and analyze this data,
unearthing hidden patterns, trends, and correlations that human traders may
overlook. This newfound ability reportedly empowers forex B2B firms to identify
trading opportunities and comprehend market behavior.</p><p>However, FXStreet’s
Analyst, Ian Coleman, said in an <a href="https://www.financemagnates.com/executives/interview/automation-with-ai-needs-a-human-touch-fxstreets-ian-coleman/" target="_blank" rel="follow">interview
with Finance Magnates in May</a> that
AI should be viewed as an overlay to enhance human analysis. He said while AI
provides signals and insights, human intervention is essential to ensure proper
risk-reward assessment and adaptability to changing market dynamics.</p>

This article was written by Jared Kirui at www.financemagnates.com.