The ideal investment? He’s the one who knows how to handle the unexpected

In investments, as we know, balance sheets are made in the end and what may appear profitable today may turn out to be a flop in hindsight. This is the reason that often pushes savers to leave the money still in deposit, with the result that it depreciates due to inflation. While, as has also been seen in recent years, with the pandemic crisis first and then the surge in inflation, over time the financial markets are projected towards new highs.

Given that no one can predict with certainty what will happen to the prices tomorrow, careful financial planning can help reduce risks, even if it cannot take into consideration the variables that affect not so much the underlying scenario, but rather the life of the investor and his needs. Even if the situation in this area is rapidly evolving, thanks to the new frontier of artificial intelligence which allows for predictive analyses, capable of “weighing” even the unexpected events of life, as well as career paths that impact the ability to save and investment. We talked about it with Daniele Grassi, CEO and co-founder of Axyon AIa Modena-based fintech that deals with artificial intelligence and deep learning predictive solutions and which has just organized a Milan a conference entitled “Artificial Intelligence: The Future of Financial Markets”.

How is artificial intelligence revolutionizing savings management?

“The new frontier of technology allows the processing of immense volumes of data, including non-traditional data such as the language used in news and market sentiment, to refine portfolio management and risk management techniques. Artificial intelligence facilitates the construction of personalized investment portfolios, calibrated to the specificities of each investor thanks to the ability to analyze and correlate a wide spectrum of variables”.

Guy?

“For example, risk profile, age, social context and investment objectives. This approach does not aim to replace the role of the human operator but to integrate with it, enhancing the effectiveness of management and the ability to respond in a dynamic and innovative way to the needs of investors”.

What are the implications for small investors?

“We are moving towards greater personalization of investments. Portfolios created with the support of AI not only reflect the needs communicated by the investor, but are also designed considering less obvious aspects, such as career prospects or other implicitly relevant variables. This advanced customization allows you to have portfolios that are more suitable and responsive to changes, both personal and market-related.”

Are there also new risks alongside the opportunities?

“While AI can present challenges in terms of decision transparency, the added value in terms of investment adaptability and relevance tends to outweigh the potential limitations, especially considering that many investors do not have advanced financial training. Technology, therefore, is configured as a tool for democratizing access to optimal investment solutions, despite the need for expert guidance for a full understanding of the choices made”.

Is it possible to imagine what the developments will be for the offer of the financial sector?

“So far, AI has not yet led to significant market concentration around a few large players. The landscape is characterized by a certain fragmentation, with multiple entities contributing to innovation and the provision of advanced and diversified financial services. This situation could evolve towards progressive consolidation, given that access to high computational capabilities and specific technical skills in the new technological frontier can constitute a factor of competitive advantage. However, barriers to entry are not insurmountable and do not in themselves guarantee market dominance. Supply currently slightly exceeds demand, but as AI applications expand into new areas, such as financial regulatory compliance, the industry is poised for rapid evolution. In this context, it is plausible to expect unprecedented market dynamics, with possible mergers, acquisitions and the birth of new players focused on financial technological innovation”.