How To Invest In AI
Don't Miss The Boat! 

Wondering how to invest in AI affordably in effectively? Artificial intelligence is rapidly transforming our world, from tech to transportation, from healthcare to entertainment, and finance is not left behind.

As AI continues to advance by leaps and bounds, the investment potential in this dynamic sector has soared.

For instance, Nvidia, the chipmaker AI tech-company has recently shown staggering growth that has it pegged as potentially the first trillion-dollar company in history.

A lot of investors, unskilled or seasoned, still kick themselves for having missed the growth spurt of Google, Amazon, or Tesla. So, how to invest in AI may just be the order of the day.

Let’s explore how you can harness the power of AI growth using affordable investment platforms and robo-advisors.

Why Invest in AI?

Let’s look at several compelling reasons to consider incorporating AI into your investment strategy.

AI is growing at warp speed and the field is exhibiting market expansion patterns almost never seen before.

In the coming years, this sketches out the potential for high returns on investment if you’re well-positioned, or with an early enough start.

High-Growth Potential

We can also see in our daily lives that AI has real-world applications and is in fact changing our world irreversibly day by day. This is no longer science fiction.

Various industries, from self-driving cars to writing books to facial recognition technology all translates into widespread adoption with strong growth potential for AI companies.

Investing in AI provides credible diversification for your investments by reducing reliance on traditional asset classes, not to mention its current potential for much higher returns.

However, let’s not throw all caution to the wind because the AI sector is still young and can be volatile with companies susceptible to experience rapid fluctuations in stock price.

Despite those early challenges, thoroughly researching and identifying the more established companies and promising startups can prove to be a game changer.

Why Invest with Robo-Advisors?

Traditional human financial advisors who are specialists in AI or any other field can be expensive, therefore less accessible to most casual investors.

Robo-advisors typically charge significantly lower fees than human financial advisors, making them a cost-effective option.

By automating your AI investments with robo-advisors available in automated investment platforms, you can overcome many challenges while minimizing costs that are known to eat into your investment funds.

Robo-advisors build and manage your investment strategy with algorithms that take into account your choices and preferences in investment goals and risk tolerance.

While one investor may prefer a low-risk steady growth, another investor might prefer and aggressive high volatility but higher returns approach.

Robo-advisors will set things up accordingly and you won’t need constant checking and managing of your investments by hand.

Typically, robo-advisors will “favor” building a diversified mix of assets like stocks, bonds, and ETFs (Exchange Traded Funds). If the mix geared towards AI assets, this approach will still help mitigate risk to circumvent the proverbial putting all your eggs in one basket.

Choosing the Right Robo-Advisor for AI Investment

There are some considerations when choosing a robo-advisor for your AI investment strategy:

While many robo-advisors are technologically sound, not all robo-advisors are designed for investments in individual stocks or specific ETFs.

When choosing robo-advisors, ensure that the platform you select has thematic investing, in particular, focused on AI or AI-related ETFs.

Some robo-advisors (but luckily not all) require a minimum investment to open an account. Stay put to find out what top platforms charge or if they don’t.

Robo-advisors also have varying fee structures, from flat monthly fees to a percentage of your assets under management (AUM).

In addition, some robo-advisors offer more customization options than others. If you have specific preferences for the category or type of AI companies you want to invest in, look into how much customization that platform allows.

Popular Robo-advisors with AI Investment Options

Here are examples of highly rated platforms where you can securely choose to open your account for your AI-focused investment strategy:

Betterment

• Offers "Smartfolios" with thematic investing options, including AI technology.
• Minimum investment: $0
• Fees: 0.25% - 0.40% of AUM annually

Wealthfront

• Provides similar services to Betterment, with robo-advisor portfolios and thematic investing options.
• Minimum investment: $500
• Fees: 0.25% of AUM annually

Schwab Intelligent Portfolios

• Uses Modern Portfolio Theory to build portfolios and offers some customization options.
• Minimum investment: $0
• Fees: 0.08% - 0.28% of AUM annually

These are just a few examples, and it's crucial to research various robo-advisors to find one that aligns with your specific needs and investment goals.

Additional Considerations for How to Invest in AI

For investors comfortable with in-depth research and potentially higher risk-reward, directly investing in individual AI stocks can offer greater control and potentially higher returns.

That said, this is an approach that requires significant research to identify promising companies and an understanding of the specific risks involved.

Exchange-traded funds (ETFs) that focus on the AI investment sector can provide a more diversified approach compared to individual stock picks.

These ETFs hold a basket of AI-related stocks, spreading your investment risk and offering exposure to a broader segment of the AI market.

Popular AI-focused ETFs

The following are examples of EFTs for your information:

ARK Innovation ETF (ARKK)

ARK is an actively managed ETF that invests in disruptive innovation companies, with a significant portion focused on AI.

Global X Artificial Intelligence & Robotics ETF (ROBO)

Global X is an ETF that tracks an index of companies involved in or specializing in AI and robotics technologies.

Wedbush ETFMG Global Cloud Computing ETF (SKYY)

While not purely AI-focused, this ETF includes many companies heavily involved in cloud computing, a critical infrastructure for AI development.

In Closing

Learning how to invest in AI holds significant potential for long-term growth. However, it's crucial to approach this exciting sector with a balanced perspective before investing.

As AI continues to rapidly evolve, stay informed about emerging trends and advancements to adapt your investment strategy accordingly.

Diversification is always key. Never put all your eggs in one basket. Robo-advisors and AI-focused ETFs can significantly help achieve diversification.

Consider your risk tolerance: AI can be volatile. Choose an investment approach that aligns with your comfort level for risk.

By leveraging robo-advisors and other investment tools, you can position yourself to benefit from the growth potential of AI while at the same time managing risk judiciously.

Remember to conduct your own research, including consulting with a financial advisor if or when necessary to further enhance your AI investment journey.

Note:  This is informational, not financial advice. Also, keep in mind that past performance is not necessarily indicative of future results.  Always research any ETF or other investments thoroughly before risking your money, and don’t risk anything you can’t afford to lose.

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