A new report from Financial Insights shows how artificial intelligence (AI) is being used in finance to help people make better choices with their money. This report came out in April 2025 and explains how companies, banks, and even regular people are using AI tools to guess what might happen in the stock market. These tools can look at large amounts of data quickly to help make smart and fast decisions.

The study talked to more than 200 financial companies from around the world. It found that almost 80% of them are already using AI to help plan investments. AI can look at things like past market trends, news stories, and even social media posts to figure out what might happen next in the market. As AI becomes more common, experts are thinking about what it means for people and whether it’s being used fairly.

AI has been used in finance for a long time, but now it’s getting better and doing more than ever before. In the past, big financial companies used computer programs to help make trades. Now, with better AI technology, computers can do more than just trade fast—they can also predict when and where to invest.

During the COVID-19 pandemic, markets became more unpredictable, and many investors wanted tools that could help them make decisions quickly. That’s when AI tools became even more popular. Now, whether it’s a big bank or a phone app helping someone save money, AI is playing a big part.

Today, AI is at the center of how money is managed. Robo-advisors (online tools that help people invest) and high-speed trading systems use AI to make choices every second. The new report shows how much AI is changing the world of finance.

How AI Helps with Investing:

• Guessing Future Market Trends: AI looks at how markets behaved in the past and uses that information to guess what might happen in the future.
• Reading the News and Social Media: AI can quickly go through articles and social media posts to figure out how people are feeling about the economy and companies.
• Managing Investment Portfolios: AI can adjust someone’s investments based on their goals and the current state of the market, keeping things balanced and safe.
• Understanding People’s Feelings (Sentiment Analysis): AI can read what people are saying online to see if they’re feeling positive or negative about a company or product.
• Spotting Risky Behavior: AI can find strange or risky transactions that might lead to big losses or fraud, helping keep investments safer.

What Experts Are Saying: “We’ve entered a time where AI doesn’t just help us—it leads the way,” said Elaine Brooks, a top technology expert at a big investment company. “It helps us stay ahead in ways we couldn’t before.”

Another expert, David Zhang, said, “AI saves us time and gives us answers faster. But we also need to make sure we use it in fair and clear ways.”

Important Numbers:

• 78% of companies using AI say they’ve made more money since they started.
• In 2024, funds that used AI made 13% more money than those managed by people alone.
• More than $150 billion is now managed by AI tools around the world.
• Everyday investors using AI apps saw their investments grow 9.2%, compared to 6.1% for others.
• 60% of companies said they plan to spend more on AI and hire more people to work on it soon.

How This Affects the Finance World:

• Faster and Smarter Decisions: People and companies can now make decisions quickly with help from AI.
• Helping More People Invest: Thanks to phone apps with AI, regular people now have access to tools that used to only be for big investors.
• Changing Job Roles: Financial advisors are learning to work with AI to give better advice and stay helpful.
• Making Markets Work Better: AI helps reduce mistakes and might help prices stay fair and balanced.

Possible Problems and Concerns:

• Too Much Trust in AI: If people rely only on AI, they might make mistakes during times of crisis.
• Not Enough Clarity: Some AI tools don’t explain how they make decisions, which can make people nervous.
• Bias in the System: If AI learns from unfair data, it might give unfair results.
• Keeping Data Safe: AI needs a lot of personal information to work well, so it’s important to protect that data.
• Not Enough Rules Yet: Many laws don’t cover AI in finance, which can lead to confusion or unfair use.

Resources & References

• Financial Insights – 2025 AI and Investment Strategy Report
• McKinsey & Company – The Future of AI in Financial Services
• CFA Institute – Ethics in AI-Assisted Investment
• Bloomberg – AI vs. Human Traders: The New Wall Street Race
• Forbes – Fintech Trends and Disruption Analysis, 2024
• World Economic Forum – AI Governance in Financial Markets, 2023
• MIT Technology Review – Understanding AI Transparency, 2022

AI tools are changing how people invest by making it faster and easier to understand what’s going on. But we need to be careful about how we use these tools. People, companies, and governments all have a role in making sure AI is used fairly and safely.

What do you think about using AI to help with money? Would you trust a robot to invest for you? Tell us in the comments and don’t forget to subscribe for more stories about AI and finance!