AI has become a key part of investment research, helping retirement savers and their advisors process massive amounts of financial data. New technologies such as robo-advisors and AI-powered planning tools are changing how savers approach their portfolios.
Nearly every brokerage, including Charles Schwab, Vanguard and Fidelity, has its own robo-advisory service. These platforms offer index-based portfolios created with exchange-traded funds and use algorithms to allocate and rebalance. As AI becomes more sophisticated, robo-advisors will likely expand their offerings.
However, the increased adoption of robo-advisors doesn’t mean you should rely solely on AI for your retirement planning. It does have its limitations when making investment decisions for retirees.
This post originally appeared at U.S. News & World Report.