Do you buy the idea of an AI financial advisor?

IN FOCUS

In today’s newsletter, we look at:

• A bot for your money? Wealthtech firms divided on tapping genAI for investment advice
• The hidden workforce that is making AI seem more advanced
• The drawbacks of having an AI friend

Welcome to the second edition of The Prompt! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in AI. Get all our content, including The Prompt, by registering for a Tech in Asia account. Alternatively, sign up here if you just want to receive this newsletter.

Hi there,

We are in the midst of an AI revolution that will gradually impact every aspect of our lives, much like how the internet boom transformed our way of living starting in the 1990s and 2000s.

But how far will we allow AI to influence our lives? Can we trust it to manage our hard-earned money?

Personally, I prefer to do my own research before making any investment decision.

However, the rise in the number of AI-powered investment apps indicates a growing base of new investors who use these services when making investment decisions.

Our Big Story in the second edition of this new AI newsletter – written by my colleagues Melissa and Simon – precisely explores how generative AI could influence the investment advice we receive and the follow-on investments we make. It also shows how wealthtech will be another area where AI will have an impact.

Both startups and major banks are deeply invested in this concept and have been developing models to provide wealth management advice. One startup, Pi, gives advice based on an analysis of news, financial data, stock performance, and a person’s existing investments.

JPMorgan, too, plans to broaden the use of its generative AI tool, Moneyball, to flag questionable decisions made by investment managers, such as selling top-performing stocks too early.

Conversely, some believe that generative AI cannot yet be applied to financial advice and that the models need to be developed further.

In other news, AI is also gaining popularity in China as a means of companionship. In the Hot Take this week, I examine the potential concerns associated with such friendships.

— Samreen

THE BIG STORY

A bot for your money? Wealthtech firms divided on tapping genAI for investment advice

THE HOT TAKE

DEEP READS