Artificial intelligence has revolutionized almost every industry, and some firms are aiming to make it the decisive factor in your…
Artificial intelligence has revolutionized almost every industry, and some firms are aiming to make it the decisive factor in your portfolio returns. Some people are turning to AI for automated stock investing, and others are simply asking AI for good stock picks.
You can search prompts like “best dividend stocks” and “best growth stocks” to find investments that match up with your preferences, though professional advice is still the gold standard. Large language models like ChatGPT, Gemini and Grok can all provide stock recommendations with descriptions for each company.
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Overall, more than half of Americans report using artificial intelligence, and that number is likely to grow as the technology becomes more advanced. But even as AI tools become more popular, investors are a discerning bunch who ultimately care about one thing: returns. Are AI tools up for the challenge, or are they less useful for predicting long-term performance?
AI tools simplify stock research, and they continue to get better. Initially, AI models had limited access to data (ChatGPT used to have a cutoff date in September 2021), but many AI models now use real-time data. These models can now present data from recent earnings reports when explaining the pros and cons of investing in a stock.
As this technology continues to evolve, it makes more sense for investors to incorporate it into their research. However, some AI tools and research methods are better than others. Using the right AI tools and knowing how to wield them effectively can increase your chances of outperforming the stock market. Here are some rules of thumb and a short list of AI tools to get started with:
— What to look for in an AI investing tool.
— Is AI good at picking stocks?
— 5 AI stock-picking tools.
What to Look For in an AI Investing Tool
AI tools let you find stocks that align with your objectives, but there’s a subtle benefit that can significantly impact your long-term profits. Eldad Tamir, the founder and CEO of investment platform FINQ, explains a key perk of using AI tools: “AI eliminates the emotional bias that often affects investment decisions, leading to more rational and consistent choices based on data rather than gut feelings.”
A lack of emotional bias isn’t the only benefit of using AI tools. “AI can analyze vast amounts of data much faster than humans, identifying patterns and trends that might be overlooked,” says Tamir. “This allows for rapid decision-making in a market where timing can be everything.”
Speed and objectivity make for a good start. Here are some other features to look for in an AI tool:
— Versatility. Some AI tools let you ask more detailed questions, which can help you find optimal investments for your portfolio.
— Trading signals. Some AI products let you find stocks that recently reached or exceeded key technical indicators. Traders won’t have much luck with ChatGPT, Gemini or Grok because those AI tools do not let you see real-time trading signals. Some tools can also make investments for you when stocks reach certain price points or technical lines, saving considerable time.
— Data availability. Does your AI stock picker let you see a stock’s volume, moving average and other details? Some AI tools have better information on your favorite stocks than others.
— Stock scoring. While this feature shouldn’t make or break your decision about an AI investing tool, a scoring system can tell you what the AI tool “thinks” about a stock. You should familiarize yourself with the methodology used to formulate the score before taking it seriously.
Is AI Good at Picking Stocks?
Most investors would have balked at the idea of using artificial intelligence to pick stocks a few years ago, but rapid improvements in the technology have made it more viable. John O’Connell, founder and CEO at The Oasis Group, explains how AI has evolved and what separates it from human stock pickers: “AI is better than humans at calculating technical and fundamental parameters and much better than humans at pattern recognition. This is a huge advantage if the investor wants to make decisions based on solid analyses. Some examples of firms using AI to pick securities include Danelfin, AltIndex and TrendSpider.”
It’s not just technical and fundamental analysis that makes AI stock pickers shine. These models can gather and interpret real-time information that plays a key role in determining if a stock presents a buying opportunity. Jack Fu, co-founder and managing director at Draco Capital Partners, also highlights some of AI’s benefits while explaining that responsibility still falls on the investor: “When properly built and monitored, AI can add real value to stock selection. It processes torrents of information faster than any research team, reading macro indicators such as weekly jobless claims, changes in the yield curve, new orders indices, consumer sentiment and real-time money supply, then cross-checking them with price action and market tone. From that mosaic, it assigns probabilities to how a stock might move.”
Fu also mentioned that any major news can make AI models less useful since they rely on past data to make future predictions: “Algorithms learn from the past, so an unprecedented shock can throw them off. Highly complex models are hard to audit from end to end, which raises transparency concerns. And when a crisis erupts, even adaptive systems need time to recalibrate, so human oversight and contingency planning remain indispensable.”
[READ: Best Investment Apps For Beginners In 2025]
5 AI Stock-Picking Tools
ChatGPT, Gemini and Grok serve as good research starting points. They have free versions that allow you to provide basic prompts and get detailed summaries of individual stock picks and analyses of recent earnings reports. Other AI tools cater more to picking stocks than fulfilling general prompts, however. These are some of the top AI stock-picking tools to consider:
Magnifi
Magnifi lets you connect your brokerage account to the app so you can use AI to analyze your portfolio. You can ask Magnifi’s AI assistant questions about your portfolio and finances to discover great stock picks and ways to save money. For instance, you can ask Magnifi if you are paying excess fees for your mutual funds.
Magnifi will review your holdings to see if your funds’ expense ratios are higher or lower than average, then give you the option to see several lower-fee alternatives. You can also ask how much exposure your portfolio has to a stock, and Magnifi will give you the exact percentage. This calculation includes any indirect exposure you have through mutual funds and ETFs.
Magnifi also matches its strategies to your risk tolerance. The app will make different recommendations based on whether you have a high risk tolerance or are risk-averse. Magnifi also provides commission-free trades so you can keep more money in your pocket.
TrendSpider
This technical analysis-based AI tool comes with a bot, asset insights, back-testing and other features that make it suitable for active traders. Back-testing lets you see how your current strategy would have performed in previous market cycles.
TrendSpider also includes real-time scanning and idea generation. You can search for market opportunities based on chart patterns, recent news, analyst actions and other parameters. The tool uses custom heat maps to display technical and fundamental data in a comprehensive, concise way.
While you can use TrendSpider’s data to inform trading decisions, you can also set up an AI trading bot to make trades for you. Each trading bot is based on a predetermined algorithm. You control the inputs and can back-test any strategy before setting the trading bot loose.
Danelfin
Danelfin helps investors make data-driven investment decisions and offers AI analyses for a wide range of stocks, ETFs and investment themes. Neal Shah, CEO of health equity research firm CareYaya Health Technologies, suggests Danelfin for investors who are comparing AI investing tools.
“One app that stands out for AI stock picking is Danelfin. What makes Danelfin special is its clear, straightforward approach and its impressive track record,” Shah says. “Unlike many stock-picking apps that rely on obfuscatory jargon, Danelfin is unambiguously user-friendly.”
Danelfin assigns each stock an AI-generated score from 1 to 10, which reflects its estimated likelihood of beating the market over the next three months, he explains. It also has a free plan that gives you a daily rundown of its 10 favorite stocks, which cover both U.S. and European equities. “You can also access three-month price targets for around 3,000 stocks,” Shah says.
Composer
Composer is a great resource for traders who want to create strategies that revolve around their goals and risk tolerances. You can modify your trading strategy and lean on Composer’s AI-assisted editor for suggestions. Composer also lets you choose from several pre-built trading strategies if you are looking for some trading ideas as a foundation.
Jonathan Garini, CEO and enterprise AI strategist at FifthElement.ai, mentioned Composer when sharing some of the top AI stock picking tools for retail investors. “This platform helps you create rule-based portfolios through logic blocks, perfect for testing AI-influenced strategies, and does not require any coding,” Garini explains.
Although Garini likes Composer, he’s cautious about blindly following what any AI stock trading app suggests. “No app should be treated as a black box. Measure performance versus benchmarks and keep it simple rather than adding new layers of complexity,” he says.
AInvest
AInvest offers several AI-powered stock screeners and lets investors apply additional parameters. The app also lets you scan the news and validate ideas with back-testing.
The company’s chatbot, Aime, acts as an AI advisor. Aime lets you see key fundamental and technical indicators before buying or selling shares. It also offers clear explanations of important concepts and lists the pros and cons to help you make well-informed trades.
Aime can analyze your stock trades in other brokerage accounts as well, such as those from Fidelity and Robinhood.
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Can AI Pick Stocks? 5 AI Investing Apps to Try originally appeared on usnews.com
Update 11/03/25: This story was published at an earlier date and has been updated with new information.
