Artificial Intelligence has revolutionized many industries, but it has also had a profound impact on the financial world. The next phase could be producing alpha-generating model portfolios. Models are already widely used in the financial world with more than 4/5ths of advisors utilizing them for their clients. Companies like UX Wealth Partners are taking that to the next level by integrating the latest machine learning techniques into their strategies to gain an edge. One such example is AIQQAI which uses patterns and probabilities to determine a bullish or bearish outlook on the market for the next week which decides how much to invest in cash vs the QQQ ETF. This has led it to have a 26 percentage point advantage over the QQQ in almost the whole first half of 2022. Companies utilizing models and embracing technology could forma new path moving forward.

Finsum: Fintech innovations such as machine learning will be critical to the growth of models, ETFs, and direct indexing in the next decade.