Home Articles How Artificial Intelligence, Big Data & Chatbots are Helping Investment Sector

How Artificial Intelligence, Big Data & Chatbots are Helping Investment Sector

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Several brokerage firms and retail investors are investing in technologies such as AI, ML, Big Data and other technologies. Read on to know how these financial investment sector is reaping the benefits of these technologies…

Several brokerage firms and retail investors are investing in technologies such as Artificial Intelligence (AI), Machine Learning (ML), big data, analytics, chatbots, virtual assistants, social media, and other technologies. These retail investors are reaping the benefits of the disruption that the latest technologies have brought to the equity market.

There was a time when most of us went through a raft of recommendations from share broking houses or stayed glued to business channels on television to get ideas on how to play the stock market. Now, the scenario has changed and everyone is investing in equities by getting queries answered by a chatbot, receives stock tips based on individual interests, and place trade orders through a mobile app.

Customisation of Content
Nowadays, most of us are receiving financial investment recommendations based on our specific interests. Actually, there is a system in place which is analysing everyone’s interest areas. For instance, after this year’s union budget, some of the investors received a report from a brokerage firm listing the announcements that was positive for stocks and those that could negatively impact their portfolio. This shows a lot of customisation of content.

New technology caters to digital-savvy millennials, with income to spare, who are rushing to the stock market to grow their wealth. Several of us are cashing in on the advantages that have arisen ever since technology has disrupted the equity market.

Apart from bots, trading firms are using technologies like AI, Big Data and Analytics to come up with predictive analytics to understand consumer preferences and also acquire new customers. For example, an investor who has been regularly checking the price of a particular stock on a trading platform, gets an instant alert whenever there is a sharp movement in it. Securities firms are sending detailed analyses of the customer’s chosen stock with historical data points, comparison with peers on various financial parameters, and overall industry trends so that the customer can make smart choices.

Data analytics is being used to identify an investor’s interests from multiple touch points such as the firm’s mobile app or the customer’s browsing pattern to come up with customised and predictive content. It is now possible to get insights into investors’ future trading behaviour as well.

Growing Trend
Last year, Edelweiss Securities and others have flagged off in India the notion of conversational investing which facilitates interactions between customers and non-humans in managing their financial lives. All kinds of brokerage firms have invested in technologies like Artificial Intelligence, Machine Learning, and other technologies to get younger investors onboard. And they are doing it especially to cater to tech-savvy millennials with high disposable incomes, who are flocking to the stock market to create wealth.

Brokerage firms like HDFC Securities and Karvy, have introduced the concept of  “conversational investing” through chatbots.

Currently on the HDFC Securities bot, you can invest in mutual funds, check your portfolio valuation, see stock and mutual fund recommendations and check stock prices. They are also in the process of providing live stock investments and IPO applications on the chatbot. On the HDFC Securities – virtual assistant, Arya, is present on Google Assistant and Amazon Alexa, so you can invest in the recommended stocks through voice commands

Chatbot technology offers an even playing field for Indians across the country and Tier-II and Tier II have reaped the benefit.

Future Course
With stock trading going heavy on Artificial Intelligence, will the human interface become irrelevant? Will market experts and “star” advisors soon become a thing of the past? Well, we are yet to reach that stage, but the way technology is evolving, the day may not be far when the role of stock market “experts” is largely taken over by Artificial Intelligence.

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