Artificial Intelligence, or in its previous more primitive forms, has been used by the financial industry in one way or another for some time.

The most common use was spotting patterns in the movement of stocks, bonds, currencies, and commodities and finding ways for the investors, for instance, investment banks, to profit from market inefficiencies.

The most basic example is that of arbitrage: computers have analyzed pricing differences in different markets to benefit from price differences. Similarly, machine learning has been used to analyze a large amount of data to find investment opportunities. But AI is no longer just for institutional investors. It’s now available through apps on smartphones. This technology will inevitably change the nature of investment and, indeed, change the world as Google did some 25 years ago.

This book is intended primarily for MBA and MSc students at Robert Kennedy College in Switzerland, but it can be helpful for anyone interested in investing through ETFs. It discusses how to support investing through AI and benefit from the opportunities it presents. It also covers some of the newest actively managed ETFs powered by AI, which represent a potential big revolution in finance as they actively use the technology for portfolio selection. And since machines are much better than humans at analyzing large amounts of data, they are likely to change investment decisions dramatically.

However, the book is neither a technical exploration of artificial intelligence nor how it can be used to make investment decisions. It is instead a guide to using existing tools provided by asset managers, traditional banks, and neobanks to optimize your asset allocation through AI and execute your strategies with ETFs.