How to Invest with AI: Tools and Tips for 2025
Whether the idea of artificial intelligence excites or scares you (or both) there are plenty of ways it can make your life easier. One that you may be considering is using it to boost your investing efforts. AI investing platforms like Wealthfront and Robinhood can help you with anything from market insights to personalizing your portfolio strategy. It’s a tool both beginner and experienced investors use for more data-driven decisions, but it’s not necessarily for everyone.
We’ll talk about some of the best AI investing apps, how to invest with AI and tips to make the most of it.
What Is AI Investing and How Does It Work?
AI does with investing what it aims to do with most things: do some of the work for you. Those who use AI investing are using machine learning and algorithms to help with or automate their investment decisions.
It can do real-time market analysis, scan the news and social media for sentiment tracking, make suggestions for your portfolio and assess risk. This is something most investors or advisors used to do themselves.
And, just like with any use of AI, it will not fully replace human judgement. You’re not meant to follow it blindly and it doesn’t eliminate risk. It simply makes information gathering more efficient.
Benefits of Using AI for Investing
Fast data gathering and analysis is the main benefit of AI investing platforms. It also allows you to get personalized insights based on what you want to accomplish.
Accessibility is also a big factor for people. Many people saw investing as something for people with a certain amount of money and knowledge. These AI investing apps aim to even out the playing field. They allow you to access tools and insights for cheaper than you’d typically get from financial advisors. Plus, many of them can automate your investing, so you don’t need a bunch of extra time either.
AI Investing Platforms To Consider
If you feel ready to use artificial intelligence investing tools, here are a few choices.
Robinhood
Robinhood is a popular investing app that allows users to trade stocks, ETFs and cryptocurrencies with no commission fees. It primarily appeals to beginner and intermediate investors who want a streamlined way to invest. Robinhood also recently announced it’s launching a new AI investing tool this year called Robinhood Cortex, which will provide real-time market analysis and insights. It won’t do the trades for you, but it will get you quick and thorough information like why a stock is going up or down that day or present new strategies that align with your goals.
The basic version of Robinhood is free, though it also offers a service called Robinhood Gold (starting at $5/month), which includes access to premium research, Level II market data and the ability to invest on margin.
Wealthfront
Wealthfront is designed for long-term, passive investors who want automated, goal-based portfolio management. The app offers personalized financial planning and automatically rebalances portfolios. It also analyzes user data to suggest tailored advice for saving, home buying or retirement goals, integrating banking and investing in a cohesive platform.
While Wealthfront has a roster of certified CPAs, CFAs and CFPs (for which you pay an annual advisory fee of 0.25%1), it’s also known for its Tax-Loss Harvesting software. This monitors your investments and automatically trades similar assets that have lost value, which can help lower your tax bill2 and potentially keep your portfolio on track.
Right now you can get a $50 bonus,3 by opening and funding your first investing account with Wealthfront. Then, fill out the questionnaire on the website and keep at least $500 in your account for the first 30 days (terms and conditions apply).4
Magnifi
Magnifi is essentially the ChatGPT of investing apps. It’s best for people who consider themselves DIY investors because it can be both guided and self-directed. So, maybe you don’t want things fully automated, but you like the idea of having AI assistance. Additionally, the AI assistance is friendly and easy to use. Just ask it a question like you would an advisor, no matter how “dumb” you think it is. Pricing starts at as little as $11 a month.
What About Automated Investment Platforms?
Some AI investing platforms offer automated investing, but automated platforms and AI-driven investing aren’t exactly the same. Automated investing uses predefined algorithms and models to manage portfolios based on user input and established investment strategies. AI-driven investing develops strategies in real time using machine learning and advanced data analysis. So automated investing is ideal for people who want to pick a strategy and let the app handle the rest.
For platforms that give you the benefit of automated investing, we recommend Stash. Its automated investment tool called Smart Portfolio will build, monitor and balance your investments for you. It’s included in both the Stash Growth plan for $3 a month and the Stash+ plan for $9 a month.
Who Should Consider AI-Based Investing?
These types of investing platforms are great for first-time investors or DIY investors. They can get you a deeper market analysis than you would get on your own without hiring an advisor. Investors who don’t have a lot of spare time would also benefit from these apps. You don’t have to spend as much time researching your decisions, and a lot of them offer automated investing options. Or, maybe you’re a long time investor who wants to see what AI investing tools can offer you. They could potentially help you fill gaps in your strategy.
Tips for Using AI Tools Responsibly in Your Investment Strategy
AI investment platforms aren’t meant to be seen as foolproof. They can help you make decisions, but they can’t tell you the future. Markets are still unpredictable. The best way to use them is to set risk limits and thoroughly review the recommendations. That means some upfront research will benefit you. You can combine AI tools with basic investment principles like portfolio diversification and focusing on the long term.
It’s also smart to read the fine print on fees and terms and conditions for each app. Then, after you’re fully informed, monitor your progress and change up your strategy and goals if you need to.
Final Thoughts: Should You Use AI to Invest in 2025?
Using AI, even for things like investing, is no longer the wave of the future. It’s what people are using right now, and it’s not going away anytime soon. People who want to know how to invest with AI are turning to apps to access smart strategies for the everyday investor.
As long as you don’t let the advice it gives you go unchecked, AI investing platforms can save you time, help you gain investment knowledge and optimize returns.
1. All client accounts’ trading and rebalancing are managed by Wealthfront’s software.
2. Nothing in this communication should be construed as tax advice, an offer, recommendation, or solicitation to buy or sell any security. Investing involves risk, including the possible loss of money you invest, and past performance doesn’t guarantee future performance. Investment advisory services are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC.Tax Loss Harvesting benefits vary depending on the client’s entire tax and investment profile. Wealthfront Advisers doesn’t provide tax advice. The performance of the new securities purchased through the tax-loss harvesting service may be better or worse than the performance of the securities that are sold for tax-loss harvesting purposes.
3. ($50 cash bonus when you deposit $500), client must maintain $500 by the 30 day mark. See website for more details.4. The Penny Hoarder receives compensation when a reader clicks on the referral link that redirects them to Wealthfront, which creates a conflict of interest. Penny Hoarder’s opinions in this article are their own and are not tied directly to such compensation. The Penny Hoarder and Wealthfront Brokerage, LLC are not associated with one another and have no formal relationship outside of this arrangement.
