Day Traders Deploy AI Tools as Investor Use for Stock Picks Jumps 75%
Updated
Updated · Business Insider · Jun 6
Day Traders Deploy AI Tools as Investor Use for Stock Picks Jumps 75%
3 articles · Updated · Business Insider · Jun 6
Summary
A growing number of day traders are using AI tools such as Claude and ChatGPT to build stock screeners, research assistants and semi- or fully automated trading systems.
The appeal is discipline: traders say bots reduce panic-selling, over-trading and revenge-trading by enforcing rules and removing emotional decisions from execution.
Adoption is accelerating beyond anecdotes. eToro said investor use of AI to pick investments rose 75% in the past year, while one bot seller reported sign-ups up about 50% and one educator said inbound clients climbed more than 500%.
Users cited by Business Insider reported outsized gains, including 87% in a month, 106% this year and 788% in a demo account, though they also said AI cannot replace market knowledge or invent a winning strategy.
The trend suggests retail traders are using cheap, off-the-shelf AI subscriptions to narrow the gap with institutions, even as veterans say it is still too early to know whether AI will reshape trading for good.
Is AI empowering retail traders or just creating a new generation of high-tech gamblers?
AI trading bots promise huge returns, but what are the undisclosed risks for average investors?
As millions of retail AI bots flood the market, is a flash crash now inevitable?
The AI Trading Revolution: Why Over Half of Retail Investors Are Bullish on Artificial Intelligence for 2025-2026
Overview
In late 2025 and early 2026, day traders and retail investors rapidly adopted AI tools as financial markets, especially cryptocurrencies, became more complex and demanded faster, data-driven insights. This shift was fueled by AI’s evolution from a buzzword to a mainstream technology and the recent growth in the generative AI market. AI and machine learning models process vast amounts of data in real time, analyzing price movements, social sentiment, and macroeconomic indicators to identify trends and optimize trading strategies. As a result, traders gained a significant edge in volatile markets, and AI emerged as both a practical tool and a powerful investment theme.