Displaying items by tag: ai

Artificial intelligence has remained one of the most resilient sectors in U.S. equities, with companies like Nvidia and Microsoft benefiting from rising adoption even as other sectors faced volatility. 

With trade war and inflation concerns beginning to ease, analysts suggest AI growth could strengthen further, making direct exposure an appealing option for investors. ETFs provide one way to access this theme, but careful due diligence is essential in selecting strategies with the best long-term potential. 

The Alger AI Enablers & Adopters ETF (ALAI) differentiates itself by using bottom-up research and active management to uncover overlooked AI innovators. Its proprietary framework emphasizes companies showing high unit volume growth or positive lifecycle changes, positioning the fund to potentially outperform passive AI ETFs. 

Finsum: Investor interest is already growing—FactSet data shows ALAI attracted $40 million in net flows in July 2025, signaling strong confidence in its approach.

UBS strategists have warned that the artificial intelligence boom, fueled heavily by private credit firms and lenders, is raising the risk of overheating in the sector. Private credit, once focused on smaller businesses, has expanded rapidly into big tech, with tech-sector debt from non-bank lenders surging nearly 29%—or $100 billion—in the past year. 

The warning echoes concerns from OpenAI CEO Sam Altman, who recently cautioned that excitement around AI may be inflating a bubble. UBS noted that while this influx of capital could support hyperscaler growth plans, it may also create vulnerabilities if assets sour or growth slows. 

Tech giants including Meta, Amazon, Microsoft, and Alphabet are projected to spend $344 billion in 2025, much of it on AI-driven infrastructure such as data centers. 

Finsum: With private credit now deeply embedded in the sector, analysts caution that investors should carefully monitor risks alongside the sector’s breakneck growth.

A new Northwestern Mutual study shows that while Americans are experimenting with AI in daily life and at work, most remain hesitant to rely on it for something as personal as financial planning. 

More than half of respondents said they trust human advisors over AI for tasks like retirement planning and portfolio management, with only a small fraction willing to put that responsibility in the hands of algorithms. The survey underscores that money decisions are not purely analytical but tied to life goals, emotions, and family priorities—areas where people value empathy and nuance. 

At the same time, nearly half of Americans say they are comfortable with financial advisors using AI behind the scenes, particularly younger generations who see technology as a natural extension of expertise. Gen Z and millennials, in particular, were more open to advisors who integrate AI into their practice, compared to Gen X and baby boomers. 

Finsum: Americans want the best of both worlds: the efficiency and insights that AI can provide, paired with the judgment and human connection of a trusted financial advisor.

Farther has launched an AI-powered Investment Proposal tool, designed to help advisors generate customized client proposals in under 10 minutes. Built entirely in-house, the tool consolidates tasks that once required multiple platforms into a single secure system, ensuring both efficiency and compliance. 

It analyzes a prospect’s existing portfolio, compares it against Farther’s investment models, and produces tailored recommendations that advisors can further refine. The goal is to streamline onboarding while delivering more personalized and client-friendly proposals, helping prospects better understand their options. 

Advisors already using the tool say it allows them to focus more on strategy and client conversations, making their pitches more effective. 

Finsum: AI continues to modernize wealth management by blending automation with human expertise.

Google is committing $25 billion over the next two years to build out artificial intelligence infrastructure in the Mid-Atlantic and beyond, marking one of its largest regional investments to date. The announcement will be made at the Pennsylvania Energy & Innovation Summit, where Google will also unveil a $3 billion agreement to purchase hydroelectric power from Brookfield Asset Management. 

As part of that deal, Google will help modernize two Brookfield facilities to support its goal of running operations on 24/7 carbon-free energy. Alphabet’s chief investment officer Ruth Porat emphasized that the investments will expand clean energy access and help train Americans for careers in the AI-driven economy. 

President Trump and other key leaders will attend the summit at Carnegie Mellon University, underscoring the federal government’s alignment with AI infrastructure expansion. Meanwhile, AI firm CoreWeave is also expected to announce a $6 billion data center in Pennsylvania, highlighting growing private-sector momentum in the region’s tech transformation.

Finsum: There seems to be little doubt that AI infrastructure will dominate the alt space the next decade.