From CNBC: 2024-07-31 13:30:01

A financial advisor called PortfolioPilot, using AI, has amassed $20 billion in assets, adding 22,000 users in two years. The service, backed by investors like Morado Ventures, offers personalized recommendations and AI assistants. It aims at users with $100,000 to $5 million in assets, providing investment advice and portfolio management.

Global Predictions, a startup utilizing generative AI models, offers a report card-style grading system for portfolios. The service evaluates risk levels, adjusted returns, and resilience against sharp declines, providing specific financial advice. The median user has a $450,000 net worth, with future plans to potentially control client money for trades execution.

PortfolioPilot founder created the platform out of frustration with traditional financial advisors being like salespeople. The company employs former Bridgewater Associates employees. Regulatory scrutiny led to accusations of misleading claims in 2023, requiring a $175,000 fine. The shift towards fully automated advice could lead to a major shakeup in the industry over the next decade.

Read more: AI-powered financial advisor has $20 billion in assets