How Artificial Intelligence has and will Change Investment Strategies at Various Levels
Ansh Malhotra, Walter Payton College Prep, Junior, Spring 2026
The landscape of the investing world is undergoing a significant shift as Artificial Intelligence (AI) continues to develop from a futuristic concept to a vital strategic tool in the field. Over the last few years, the use of AI has expanded to every corner of investing, from synthesizing data to making major financial decisions. Recent research has corroborated these impacts, finding that “91% of managers are currently (54%) or planning to (37%) use AI within their investment strategy or asset class research” (Mercer, 2024). This widespread adoption has come as a result of the proven performance advantages AI use can bring compared to fully human-based management.
AI’s ability to save time and provide flexibility through light-speed data processing allows it to often have greater efficacy in its investment decisions compared to humans. For major investment firms, this advantage is apparent and quantifiable: “AI-powered funds significantly outperform their human-managed peers by 5.8% per year on a net basis” (ScienceDirect, 2022). Asset managers and hedge funds often now rely on AI for risk management, pattern identification, and even its own trading decisions, with it being able to do so in a fraction of the time it would take humans on their own.
AI’s impact, however, is not just limited to professionals on Wall Street. AI tools like ChatGPT have given everyday investors of all ages access to financial knowledge and analysis they’d never have been able to use before. Microeconomics teacher Bryan Williams agreed, adding that “AI is actively closing the informational gap between institutions and professionals and individuals, and nowadays anyone can access the information that used to need an entire team of analysts to obtain.” These new developments are already having impacts on teen investors as well: Nimay Piparia, a junior at Walter Payton College Prep, described that “Research that used to take [him] an hour can now be covered in about 10 minutes using AI.”
Overall, as AI continues to develop over time, its impact on every level of investing will only grow, from affecting financial professionals’ jobs to individual investors’ efforts. Those who learn to use AI as a tool in their investing, along with their own decision-making and judgment, will find the most success in their investing future.
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Interviewees:
Bryan Williams, High School Microeconomics Teacher, Walter Payton College Prep.
Nimay Piparia, High School Junior, Walter Payton College Prep.
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