AI in Investment: Customers do your homework

Artificial intelligence has become finance’s favorite buzzword. From robo-advisors to quant hedge funds, “AI-driven” products promise to sift oceans of data and uncover investment signals no human could ever spot.

In India, several companies, including Quantum Street AI, Kuvera, Wright Research, and Scripbox, have joined this bandwagon. These fintech and AI-based asset management models show strong promise, particularly for democratizing investing, reducing costs, and scaling to new investor segments. They may very well deliver positive performance for customers.

However, before choosing an AI-based fund or robo-advisory service, proper due diligence is essential. Customers should evaluate the following tailored pointers:

• Longevity: How long has the product/company been operating?
• Actual Returns: What are the verified, non-back-tested returns (3-5 years or as long as available)?
• Tech Foundation: Is the model based on sound and innovative technology?
• Leadership Expertise: Do key technical or AI experts sit on the leadership ...