How AI is Already Making Big Moves in 2025 Investing

As the dust settles on the 2025 U.S. presidential election, investors are closely watching market trends and looking for ways to navigate potential economic shifts. In this evolving financial landscape, one technology is standing out as a game-changer: artificial intelligence (AI). AI-powered investment applications are offering retail investors the kind of insights previously reserved for institutional giants like hedge funds and banks. But is AI really leveling the playing field, or is it just another buzzword in the ever-changing financial world?

According to a recent survey conducted by Prospero.AI, 38.9% of respondents said they would absolutely use an AI-based investment app that provides them with institutional-grade market information and insights. Another 37.1% said they would consider using such a tool, highlighting the growing interest in AI's potential to democratize financial decision-making.

Photo by Prospero.Ai

AI in investing isn’t new, but its accessibility to retail investors is a recent phenomenon. Institutional investors have been leveraging AI and machine learning algorithms for over a decade, using them to predict market movements, automate trading, and optimize portfolio management. Hedge funds and proprietary trading firms have invested billions into AI to gain a competitive edge, with firms like Renaissance Technologies and Bridgewater Associates leading the way.

Retail investors, on the other hand, have traditionally been at a disadvantage, relying on outdated tools, biased financial advisors, or their own limited market knowledge. AI-powered platforms like Prospero.AI are changing that dynamic by offering tools that analyze massive amounts of data and deliver actionable insights in close to real time. But skeptics argue that retail investors may not fully understand or trust the complexity behind AI-driven decisions.

Navigating Market Uncertainty with AI

"Right now seems like an unnerving time to make financial decisions, especially if you’re new to the market," said George Kailas, CEO of Prospero.AI. "In the wake of the election—regardless of your political affiliation—there is a level of uncertainty, and it’s hard to know how major changes to come might impact different investments. In volatile times like this, many wish there was technology to help them navigate the murky financial waters."

Historically, elections have triggered significant market fluctuations, with sectors such as energy, healthcare, and technology being particularly sensitive to new policies. AI tools like Prospero.AI aim to help investors navigate these uncertainties by providing data-driven insights rather than speculative guesses.

For those skeptical about AI's capabilities in the investing world, Prospero.AI's recent success with Coinbase (COIN) offers a compelling case study. Leading into the election, COIN received the highest possible rating—100/100—in both Prospero.AI's long-term and short-term predictive signals. According to Kailas, this indicated "substantial expectations of appreciation by institutions in both the short and long term options markets."

"The only other stock we've ever seen achieve this level of confidence was META, which turned out to be one of our best long-term case studies," Kailas explained. The platform's analysis suggested that market optimism around a potential Trump presidency—perceived as crypto-friendly—could further boost COIN's value. 

While AI-driven investment platforms are being touted as the future of retail investing, some experts warn against over-reliance on technology. Critics argue that AI models, no matter how sophisticated, are still prone to biases based on historical data and may struggle with unprecedented market events. Additionally, while AI can process data at incredible speeds, human intuition and critical thinking remain crucial elements in investment decisions.

Another concern is the democratization paradox—while AI tools provide retail investors with valuable insights, they also contribute to increased market efficiency, potentially reducing the very opportunities investors seek to exploit. As more people rely on similar AI-driven signals, market reactions could become more predictable, leading to diminishing returns.

Despite these concerns, the success of AI in stock prediction isn't just about individual wins; it's about transforming access to financial insights. Traditionally, institutional investors have leveraged vast resources and proprietary algorithms to stay ahead of market trends. With AI-powered platforms like Prospero.AI, retail investors now have the opportunity to tap into similar data-driven insights, leveling the playing field in unprecedented ways.

"Our technology simplifies institutional trading behavior into actionable insights that anyone can understand and act upon," Kailas said. "Whether you're a seasoned trader or just starting, AI empowers you to make more confident investment decisions."

As we move further into 2025, the role of AI in investing is expected to grow even more. With financial markets becoming increasingly complex and intertwined with global events, the ability to process and analyze data at scale will be crucial. AI-driven platforms like Prospero.AI are positioning themselves as essential tools in an investor's arsenal.

In a time of economic uncertainty, AI is proving to be more than just a buzzword; it's a powerful ally for those looking to make informed, strategic financial moves. As more investors embrace AI-powered platforms, the financial world could become more accessible and transparent than ever before, but it's essential to remain cautious and informed about the technology’s limitations.

Photo by Tyler Prahm