Robinhood Plans to Provide Users with AI Tools to Help Informed Trading

Robinhood announced plans to equip its users with artificial intelligence (AI) tools to help them make informed trading decisions. This development follows Robinhood’s acquisition of Pluto Capital, an AI-powered investment research firm.

Integration of AI Into Robinhood Trading Tools

According

to Robinhood, the integration of Pluto’s AI technology will enable users to make “informed decisions swiftly and confidently.”

With the help of Pluto’s AI system, the Robinhood trading app will make use of large language models to process and analyze financial data in real-time.

This will help integrate accurate information like crypto prices, news articles, company financials, and the U.S. Securities and Exchange Commission (SEC) regulatory filings on the trading app.

Robinhood Markets, Inc. is officially acquiring Pluto Capital, Inc. 🤝

An artificial intelligence (AI) powered investment research platform, that delivers highly-customized investment strategies based on customer needs and financial goals. https://t.co/PPaDkbX2q0 pic.twitter.com/ie8ZGfP7ZW

— Robinhood (@RobinhoodApp) July 1, 2024

As part of the acquisition, Pluto Capital’s founder and CEO, Jacob Sansbury, will play a crucial role in Robinhood’s product development.

Sansbury, who previously worked as a technical lead and senior software engineer at NVIDIA, brings valuable AI and chip technology expertise to Robinhood’s team. His involvement will significantly influence the company’s product roadmap and future AI integrations.

The acquisition of Pluto Capital to provide Robinhood trading tools is one of the recent strategic moves Robinhood has taken.

Recall that Robinhood agreed to purchase Bitstamp for $200 million in June to accelerate its global expansion. It will leverage Bitstamp’s over 50 licenses and registrations across the U.S., the U.K., the EU, and Asia.

Growing Impact of AI Trends in the Crypto Market

The introduction of AI-powered tools into crypto trading apps represents a broader trend in the financial technology sector, particularly in cryptocurrency trading.

The global AI trading market, which was valued at $18.2 billion in 2023, is projected to triple in size by 2033, a rapid growth showing AI’s increasing importance in financial markets.

AI trading tools that use various technologies, such as machine learning, sentiment analysis, and complex algorithmic predictions, are expected to analyze millions of data points. This will make it easier to execute trades at optimal prices and forecast markets accurately.

Since AI can process vast amounts of data from various sources, trading platforms like Robinhood are integrating these tools to offer users a competitive edge in their investment journey.
Additionally, AI can automate many aspects of trading, which helps reduce operational costs and human error.

On March 27, three leading blockchain-based AI projects – Fetch.ai, SingularityNET, and Ocean Protocol – merged, demonstrating that AI’s influence on the crypto industry extends far beyond trading.

These three companies plan to create a decentralized AI collective that offers an alternative to AI solutions controlled by major tech corporations.

The decentralized #AI landscape made a significant leap with the launch of the Artificial Superintelligence Alliance (ASI) token merger🧪

This highly anticipated event unites the tokens of three leading AI-focused protocols: @SingularityNET, @Fetch_ai, and @oceanprotocol🔗 pic.twitter.com/TAsyKVRfOH

— NEO (@Defi_Neo) July 2, 2024

This initiative comes at a time when AI has become the order of the day since the emergence of generative AI tools like ChatGPT.

This growing interest has brought mixed reactions, however, with concerns from the U.K. Competition and Markets Authority (CMA) over big tech’s AI dominance. The regulatory body stated that Microsoft, Alphabet, Amazon, Apple, and Meta are monopolizing AI, which could potentially stifle competition and innovation.