Robinhood Plans to Offer AI Tools to Assist Users in Informed Trading

Robinhood Envisions Offering AI Tools to Users for Informed Trading


By Jimmy Aki
Updated: July 2, 2024, 17:25 EDT
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Reading time: 2 minutes


Robinhood has revealed its intentions to provide its users with artificial intelligence (AI) tools to assist them in making well-informed trading decisions. This decision comes after Robinhood’s acquisition of Pluto Capital, an AI-powered investment research firm.
Incorporating AI Into Robinhood’s Trading Tools
According to Robinhood, the integration of Pluto’s AI technology will enable users to make quick and confident decisions based on reliable information.
Leveraging Pluto’s AI system, the Robinhood trading app will utilize advanced language models to process and analyze financial data in real-time. This will allow the app to integrate precise information such as cryptocurrency prices, news articles, company financials, and regulatory filings from the U.S. Securities and Exchange Commission (SEC).
As part of the acquisition, Jacob Sansbury, founder and CEO of Pluto Capital, will play a pivotal role in the product development of Robinhood. Leveraging his expertise from his previous roles at NVIDIA, Sansbury will bring valuable AI and chip technology knowledge to Robinhood’s team, significantly influencing the company’s product roadmap and future AI integrations.
The acquisition of Pluto Capital is just one of the recent strategic moves made by Robinhood. In June, the company agreed to acquire Bitstamp for $200 million to expedite its global expansion, taking advantage of Bitstamp’s over 50 licenses and registrations across the U.S., the U.K., the EU, and Asia.
The Growing Influence of AI Trends in the Crypto Market
The introduction of AI-powered tools into crypto trading apps reflects a larger trend in the financial technology sector, especially in cryptocurrency trading. The global AI trading market, valued at $18.2 billion in 2023, is expected to triple in size by 2033, underlining AI’s growing significance in financial markets.
AI trading tools, utilizing technologies such as machine learning, sentiment analysis, and complex algorithmic predictions, are anticipated to analyze millions of data points, making it easier to execute trades at optimal prices and accurately forecast markets.
As AI has the capability to process vast amounts of data from diverse sources, trading platforms like Robinhood are integrating these tools to offer users a competitive edge in their investment journey. Additionally, AI can automate many trading aspects, thereby reducing operational costs and human error.
On March 27, three leading blockchain-based AI projects – Fetch.ai, SingularityNET, and Ocean Protocol – joined forces, demonstrating that AI’s influence on the crypto industry extends beyond trading. These companies aim to establish a decentralized AI collective as an alternative to AI solutions controlled by major tech corporations.
This initiative comes at a time when AI has become increasingly prevalent, with the emergence of generative AI tools like ChatGPT. However, this growing interest has sparked mixed reactions, with concerns from the U.K. Competition and Markets Authority (CMA) regarding the dominance of big tech companies in AI. The regulatory body has expressed worries that Microsoft, Alphabet, Amazon, Apple, and Meta are monopolizing AI, potentially stifling competition and innovation.
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