Welcome back. This is part two of our series on AI and self-directed investing. In my last post, I laid the groundwork. Now I want to take it further and show you why the AI moment for self-directed investors is not tomorrow. It’s today.

The AI Era: It’s Already Here

Forget waiting. The shift is happening now. Retail investors aren’t just using AI tools — they’re gaining ground fast. In 2025, two-thirds of DIY investors are already tapping AI-powered platforms — up from 38% in 2023. At institutional firms, over 90% are either using or planning to deploy AI in their investment processes.

In other words, the disruption is real. Those who adopt early are gaining a genuine edge.

Closing the Institutional Gap

For years retail investors had one hand tied behind their back. Institutions had real‑time data, quant quants, and massive infrastructure. We had delayed news feeds and basic stock screeners.

Today, that’s changing quickly. AI lets us scan thousands of tickers, process earnings calls in real time, and monitor sentiment across social media. Some platforms even pull in satellite data or point‑of‑sale info. All of this used to cost millions or require teams of PhDs and complex setups. Now a single investor with a small budget can tap into the same insights.

Why This Year Is a Turning Point

Several forces came together in 2024-25 to make this moment unique:

  • Price Accessibility: Powerful AI tools now offer free levels or subscriptions under $50/month—realistically affordable for retail portfolios.

  • Data Access: Alternative data sources are now integrated into DIY platforms. What was once exclusive is now available via API or institutional-grade platforms.

  • Infrastructure Maturity: Cloud platforms and advanced AI models now deliver polished analytics with simple interfaces. No coding required.

  • Competitive Risk: Firms are boosting AI spend. Investors who fail to adapt risk being systematically outpaced.

That means: Either use AI in your toolkit — or get left behind.

Real Results You Can See

AI isn’t theoretical. It’s delivering measurable benefits:

  • Sharper Decision-Making: By highlighting data-driven insights, AI helps counteract human biases (like chasing hot stocks or reacting emotionally).

  • Time Saved: I’m not spending hours digging through 10‑K filings or earnings transcripts. AI tools handle that in seconds, freeing me for other things.

  • Performance Gains: Studies show AI systems can forecast earnings changes more accurately than human analysts, and uncover more profitable setups.

  • Risk Oversight: AI models detect patterns retailers often miss — especially useful when the market hits turbulence.

Your Window of Opportunity is Narrowing

Yes, AI tools are gaining adoption — but not everywhere yet. That means early adopters still enjoy a window of competitive advantage over retail investors who stick to “manual” methods.

Institutional asset managers are on board: Roughly half already use AI, with another 30‑plus percent planning to onboard it soon. That leaves retail investors behind unless they act fast.

Once AI becomes mainstream, the advantage will shift from access to execution sophistication. Those who establish AI‑powered workflows now will build muscle memory that pays off long term.

What This Means for You

This isn’t about replacing your judgment — it’s about boosting it. The best investors will blend AI insight with long-term intuition. So shift your mindset:

  • Automate your screening and analysis with custom models.

  • Combine traditional and alternative data (like sentiment or macro indicators).

  • Monitor risk continuously and adapt in real time.

  • Use data, not emotions, to make decisions faster.

The retail investing landscape is changing. The tools that once belonged only to pros are available to you now. If you move quickly, you gain an edge. If you wait until everyone else is using AI, your advantage shrinks.

This is important, though: Your competitive edge doesn’t come from new tools alone. It comes from learning how to use them better than others.

That’s why, in the coming days and weeks, I’ll walk you through exactly how I’m using AI to sharpen my investing game — and how you can start doing the same to gain your own edge.

Stay tuned!
Greg Patrick

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