5 Ways AI Is Quietly Reshaping the Stock Market — and How It Impacts Your Wallet

AI has become a part of everyday life for many people. From planning what’s for dinner to helping draft a delicate email, it’s woven into the fabric of many essential tasks — including investing. Through artificial intelligence, average investors now have access to enhanced research and analytical tools that can help them make smarter, more efficient decisions.

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Just as AI has reconfigured daily routines, it’s also reshaping the stock market. Lel Smits, an award-winning entrepreneur, global finance strategist and managing director of The Stock Network, isn’t surprised by how quickly and quietly AI is becoming integral to modern investing. In her years of watching the market, she’s seen AI shape new trends that will impact investors’ wallets.

GOBankingRates caught up with Smits as part of our Top 100 Money Experts series to get her insight on what the emergence of AI in the stock market could mean for your money.

Smits likens AI to “a radar honed in on the market, capable of scanning news, global developments and data faster than any of us ever could.”

With AI, investors can process large amounts of data from around the world — news, social media and earnings reports — in real time, identifying potential trends early. Still, reacting too quickly to raw insights culled from AI without delving into proper analysis can lead to rash decisions.

Smits uses AI to help spot trends early, accelerate research and run scenarios to see how her portfolio might react to global shifts.

“The trick is to use AI as a tool, not a replacement for your judgment,” she said. “I lean on it to cut through noise and highlight opportunities.”

Another major shift Smits has seen is how AI brings professional-level insights to everyday investors. By offering the analysis, forecasts and scenario testing that were once the domain of Wall Street analysts, AI platforms have helped level the playing field.

While this accessibility can empower smaller investors to make more informed decisions and better manage risk, many lack the background to interpret the full context of the information AI presents — leaving them vulnerable to poor decisions.

To mitigate the risks of information overload, Smits encourages starting small, perhaps by letting AI track just a few sectors of interest.

“Remember, AI is there to support your decisions, not drive them,” she said. “By keeping your approach measured, you can benefit from AI’s insights without being overwhelmed or taking on risks you don’t fully understand.”

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It’s no secret that AI is driving growth in many industries. Smits points to semiconductors, health care and finance as areas where “AI isn’t just hype, but actually changing how things are done.”

Investors are increasingly interested not only in companies that apply AI to transform their industries but also in those building AI tools and platforms. It’s understandable; innovation is exciting.

However, it’s important to avoid getting caught up in the hype without understanding the fundamentals, which could lead to losses during market corrections.

“Personally, I’m using AI to broaden my research globally to make sure I’m not chasing hype but remaining focused on long-term, diversified growth,” Smits said.

As an investor, you don’t have a crystal ball — and even if you did, it probably couldn’t tell you how your portfolio would perform under market shocks like global crises or interest rate hikes.

But with AI, you can create simulations that provide a clearer idea of how investments might react — and adjust, if needed. Smits uses AI to model how her portfolio could respond to major global events.

Still, overreliance on AI-generated predictions can create false confidence — a risk in any unpredictable market.

Making your first market moves can be stressful. It’s easy to feel overwhelmed and succumb to analysis paralysis. AI-driven insights can reduce some of that anxiety by simplifying data and highlighting key trends.

Still, pair AI insights with common-sense best practices — like diversification and patience — that experts like Smits rely on.

“Success isn’t about being the loudest in the room or chasing every quick win,” she said. “It’s about discipline, resilience and having the courage to play the long game. That lesson has shaped how I approach both investing and life.”

AI is transforming the way everyday people invest — giving them access to professional-grade insights and reducing the stress of decision-making — but it should never replace human judgment or patience.

This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.

This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.

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