Where should you use AI in investing? Start with your investment process.

There are 5 places where I found that AI can help:

Idea generation

AI is very good at making a broad first pass through messy opportunity sets: special situations, sharp price declines, neglected geographies, obscure compounders.

The point is to find more candidates worth human attention.

“Quick Kill” Gauntlet 

Use AI to quickly unearth things that would make you want to kill the potential investment:

• Accounting red flags

• Misaligned incentives

• Customer concentration

Research

Never let AI do all the work. Help you with:

• Synthesizing large quantities of information

• Discovering raw materials for you to process on your own

Behavioral Debiasing

One great use case is to have AI create a thorough ‘Devil’s Advocate’ thesis to try to talk you out of making an investment before it’s too late.

Investment Monitoring

Have AI monitor news for thesis disconfirming information.

Or have it put quarterly earnings releases/transcripts through the filter of whether they confirm your thesis or the ‘Devil’s Advocate’ argument.

What about you, how do you use AI in your investing?