Financial institutions have long recognised the immense potential of AI, leveraging it for decades to enhance trading, risk management, and investment strategies. 

But now, the game is changing.

What was once the exclusive domain of hedge funds and institutional investors is being democratized – representing one of the most significant opportunities for startups and venture capitalists in decades.

The cutting-edge AI systems that once belonged exclusively to global institutions are being packaged into apps and platforms available to everyone. And this is just the beginning. 

We might be on the brink of a fully autonomous financial system overhaul, where AI all but eliminates the need for human intervention in most financial processes. 

What does AI really mean for finance? How will this relationship develop in the future? What is the ultimate destination?

In this article, I examine these questions, tracing AI’s path through the investment world and its future direction. 

The past: AI’s institutional dominance

AI-driven investing has long been the domain of hedge funds and institutional players, leveraging massive computational power, proprietary data, and quantitative models to optimize returns.

Renaissance Technologies’ Medallion Fund, for example, has consistently delivered staggering annualized returns of 62% through AI-based pattern recognition and high-frequency trading.

Similarly, BlackRock’s Aladdin platform uses AI for risk modelling and asset allocation, serving as a cornerstone for institutional investors.

These systems were designed to outperform human traders and analysts, and they succeeded. AI systems don’t get tired. They don’t trade on emotion. They scan markets at speeds no human could match, adapting instantly to price swings. 

Take Galileo FX, for example. This trading bot reportedly turned a $3,200 investment into a 500% return – in a single week. 

With a 72% win rate and a 3.2 profit factor, some observers believe it’s pushing the limits of what’s possible in automated trading. It’s not just stocks – AI is making millionaires in crypto, too.

A bot named Tee Hee Hee apparently flipped $1,500 into $1.88 million by trading a Solana-based token ($TEE). 

While these numbers remain primarily unverified, even a fraction of such performance would be tectonic for financial markets. 

Compare this to conventional investing wisdom. A skilled human investor aims for 5-10% annual returns to beat inflation and something like the S&P 500. If AI can outpace that – consistently – the goalposts will move. 

Present day: the democratization of institutional-grade AI

Today, we’re witnessing a seismic shift.

The cutting-edge AI systems that once belonged exclusively to global institutions are being packaged into apps and platforms available to everyone.

This democratization is a game-changer, and I believe it’s one of the most exciting developments in fintech.

Over the next 3-5 years, fintech startups will bridge this gap, bringing hedge-fund-grade AI to retail investors.

I see this as an inflection point for AI-driven consumer fintech and there are several startups already making their impact:

• Alpaca offers an AI-powered, commission-free trading API.
• Composer lets users automate portfolio management through a no-code interface.
• AI-driven platforms like Tifin, Betterment, and Wealthfront already offer personalized, efficient, and cost-effective solutions, democratizing access to strategies once reserved for HNWIs. 

The impact is particularly evident in wealth management, where traditional advisors and firms face unprecedented disruption.

For decades, wealth management relied on human expertise, personal relationships, and often biased product offerings. 

But why pay high fees to a traditional firm when AI-powered platforms can process billions of pages of information, design unbiased strategies, and adapt in real-time?

As these platforms mature, they will erode the dominance of traditional firms, especially among younger, tech-savvy investors who value transparency, affordability, and convenience.

The wealth management industry is on the brink of transformation, and AI is propelling it forward.

2025 to 2028: AI as the financial command center 

Today, most consumers manage their finances through a fragmented mix of apps and services – one for banking, another for budgeting, a third for investing, and so on. 

As AI evolves, these distinct categories will converge into unified platforms that serve as the operating system for our financial lives.

Imagine a single AI that manages your investment portfolio and helps you budget, automates your savings, optimises your taxes, and even boosts your credit score. 

We’re already observing the first players establish themselves in this nascent market, with products blurring the lines between once-distinct financial services:

1. Zeta: This AI-powered platform is designed for modern families, helping couples manage joint accounts, track shared expenses, and work towards financial goals together. By leveraging AI to analyze spending patterns and automate financial tasks, Zeta simplifies the complexities of shared finances.
2. Cleo: Targeting Gen-Z users, Cleo is a digital financial assistant that uses AI to provide personalized budgeting advice and automate savings. Through a conversational interface, Cleo helps users track spending, set goals, and build healthier financial habits. The company has seen rapid growth, with revenues reaching $65.9 million in 2023, up 121% from the previous year.
3. Qapital: Qapital’s AI-driven platform uses behavioural economics principles to help users save money effortlessly. By setting customized saving rules and goals, users can automate their savings based on their lifestyle and spending habits. Qapital’s AI analyzes a user’s financial data to create personalized recommendations and adjust saving strategies over time.

As these startups grow and others join them to carve their niches, they’ll progressively change how AI integrates into financial management, making advanced financial automation the norm.

2030/2035 and beyond – The death of money: AI as your autonomous economic avatar 

Looking ahead to 2035 and beyond, AI could take on a much deeper, more profound role in managing finance. 

AI-driven financial agents will engage in financial transactions autonomously: negotiating contracts, executing transactions, interacting in digital markets, and handling complex financial strategies. 

This vision isn’t just about convenience; it’s about redefining wealth creation. AI-driven “financial avatars” could democratize access to sophisticated financial strategies, levelling the playing field for retail investors and small businesses.

For businesses, these agentic AI avatars could handle complex supply chain negotiations, seeking out deals and optimizing for efficiency. On a governmental level, they could be used to allocate resources and manage public funds. 

However, this future also raises important questions about regulation, transparency, and control.

The late Professor Stephen Hawking once warned that AI could “outsmart financial markets, out-manipulate human leaders,” and there are many practical problems to solve to make widespread autonomous financial systems function for collective benefit. 

One possible answer – a tool that can help humans keep AI finance tech on-side – lies in combining AI with decentralized finance (DeFi) and Web3 technologies. 

DeFi and Web3 enable transparent, open markets through blockchain networks and smart contracts. By integrating AI into these ecosystems, startups can create self-regulating financial systems that are both powerful and accountable. 

It’s an exciting, rapidly growing field. The global Web3 market was valued at $2.25 billion in 2023 and is expected to grow at 49.3% annually until 2030. DeFi is similarly projected to reach $42.76 billion in 2025, up from $30.07 billion in 2024. 

AI is already integrating with DeFi technologies and services to create self-regulating financial ecosystems. AI becomes part of the financial infrastructure itself. 

Imagine an AI-driven lending platform built on a blockchain, where borrowers and lenders interact directly. AI algorithms assess credit risk, set interest rates, and manage collateral – all without intermediaries. The transparency of the blockchain ensures every decision is traceable, while the AI ensures efficiency and adaptability. In this way, AI becomes part of the financial infrastructure itself.

While risks remain, DeFi could provide the necessary checks and balances to prevent AI-driven finance from spiraling out of control. 

The future belongs to AI-driven fintech

The financial tools once exclusive to global institutional players are now becoming available to everyone through mobile apps.

What’s remarkable is how ordinary this seems already. When people use their finance and investment apps, they often don’t see themselves using AI – they’re simply managing their money with modern tools.

Companies that build the most intuitive interfaces for these powerful tools – whether through SaaS platforms, APIs, or AI-first investment products – will likely capture enormous value as AI continues to transform how people manage money.

As AI progresses, highly complex, agentic AI systems will start to operate autonomously of ourselves – even acting as our avatars – making financial decisions, completing transactions, and generating wealth automatically.

While seemingly distant today, it will eventually force us to reconsider fundamental questions about wealth, markets, and the nature of money itself.

For startups and VCs, this is the moment to act. By democratizing access to institutional-grade AI, building unified financial platforms, and addressing the ethical challenges of autonomous systems, entrepreneurs and investors can shape a more inclusive, efficient, and innovative financial future.

The question is no longer if AI will transform finance – it’s how quickly we can seize this opportunity.

(Ilina Rai-Sia is Principal at Kinetic Investments, where she backs AI-native consumer startups transforming everyday experiences. She previously founded Radicle Ventures, investing in early-stage deep tech startups, and has worked across consulting, impact investing and venture roles globally.)

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Archer Aviation Inc (NYSE: ACHR) has rallied nearly 30% in two weeks at a time when the majority of speculative names are struggling due to uncertainty coming out of the White House.

But the broader environment is far from one that should make investors chase the ongoing surge in ACHR shares in March, according to famed investor Jim Cramer.

Responding to a caller on “Mad Money”, the former hedge fund manager issued a stark warning on the eVTOL company, adding “in this kind of market, it’s an invitation to your funeral.”

Despite recent surge, Archer Aviation stock is down close to 25% versus its year-to-date high.

Cramer is fine with investing in ACHR for the long term

San Jose, CA based Archer Aviation is committed to reshaping the future of urban air mobility.

It’s a name that has high potential for growth but, unfortunately, is coupled with very high risk as well, which makes it an unsuitable pick against the current macroeconomic backdrop.

However, investing in ACHR stock for the long term may not be the worst of ideas, according to Jim Cramer.

“A lot of people think Archer is a little out there, like it’s ‘lost in space.’ But they just received FAA certification for a Public Training Academy. Maybe this thing is for real,” he argued on his CNBC show.

Archer Aviation stock is no inexpensive to own

Archer has a beta of 3.14 at writing, which suggests it’s more volatile than the market at large.

It’s reasonable to tag ACHR shares as risky investment since they are currently trading at a price-to-book ratio of 6.29 – also notably higher than the market average.

Plus, a deeply negative free cash flow of about $450 million further illustrate why Archer Aviation stock is significantly overvalued at the time of writing.

Finally, shares of the US based eVTOL company do not currently pay a dividend either to make it any easier for investors to look past its concerning valuation metrics.

How analysts recommend playing ACHR shares

Despite uncertainty, experts seem to be keeping more focused on the company’s broader vision of transforming the future of urban mobility.

In the final quarter of 2024, Raymond James loaded up on nearly 0.75 million shares of Archer Aviation.

The stake worth about $7.24 million made the firm 0.17% owner of ACHR.  

Wall Street is keeping bullish on Archer stock as well.

The consensus rating on ACHR shares sits at “overweight” currently with the mean target of $11.39 indicating potential upside of more than 30% from current levels.

That said, Archer lost over $198 million in its latest reported quarter.

In February, it guided for adjusted EBITDA loss of $95 million to $110 million for its fiscal Q1 as well.

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Tesla’s electric vehicle (EV) sales in Europe slumped in February, falling behind legacy automakers Volkswagen and BMW, as well as Chinese rivals, according to data from research firm JATO Dynamics.

The sharp drop comes amid intensifying competition in the European EV market and potential consumer backlash over CEO Elon Musk’s political endorsements.

JATO Dynamics reported that Tesla’s battery-electric vehicle (BEV) registrations in 25 European Union markets, the UK, Norway, and Switzerland fell by 44% year-over-year to under 16,000 cars.

Tesla’s market share in the region dropped to 9.6%, its lowest February reading in five years.

In contrast, Volkswagen’s BEV sales surged 180% to nearly 20,000 cars, while BMW and its Mini brand combined sold almost 19,000 EVs.

Chinese manufacturers also made inroads, with BYD and Polestar registering year-over-year increases of 94% and 84%, respectively.

Political backlash and market shifts weigh on Tesla

Tesla’s declining performance in Europe coincides with growing scrutiny over Elon Musk’s political activity.

The billionaire has been vocal in his support for former US President Donald Trump and has also endorsed far-right parties in Europe, including Germany’s Alternative für Deutschland (AfD).

Musk has posted at least two dozen messages on his X platform in support of AfD, a move that has drawn criticism from European leaders and customers alike.

Musk’s role in politics, rising competition in the EV market and the phasing out of the existing version of its best-selling vehicle, the Model Y, have all impacted sales, Felipe Munoz, Global Analyst at JATO Dynamics, said in a report.

Polestar CEO Michael Lohscheller recently acknowledged the shifting sentiment, stating that his company was actively targeting Tesla owners who were disillusioned by Musk’s political involvement.

“We get a lot of people writing that they don’t like all this,” Lohscheller told Bloomberg.

A lot of people have very, very negative sentiment.

Matthias Schmidt, a Germany-based automotive analyst, told Business Insider last month that he expected Musk’s political involvements to eventually have an impact on Tesla’s European sales, and said rivals like Polestar would likely reap the benefit of disgruntled Tesla owners ditching their vehicles.

Model Y phase-out and growing competition

Beyond political factors, Tesla is also facing headwinds due to the phasing out of the current version of its best-selling Model Y.

Munoz noted that brands with a limited model lineup, like Tesla, are particularly vulnerable to registration declines when undergoing a model transition.

Meanwhile, traditional automakers and Chinese EV brands are seizing the opportunity to expand their presence in the European market.

BYD, Polestar, Xpeng, and Leapmotor all recorded rising sales, highlighting a growing shift in consumer preference.

Figures follow January’s dismal show

These latest figures follow Tesla’s dismal show in Europe in January, with sales dropping by almost half, marking one of the worst months for the automaker in recent years.

Germany, Europe’s largest car market, recorded the most significant drop in Tesla sales.

Registrations fell 60% year-over-year to just 1,277 vehicles in January, marking the weakest performance since July 2021, according to Bloomberg.

The latest figures raise concerns about Tesla’s ability to maintain its foothold in Europe as consumer sentiment shifts and competition accelerates.

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United Airlines has announced price increases on its airport lounge memberships and co-branded credit cards, aiming to capture more revenue from its booming MileagePlus loyalty programme.

With loyalty-related income reaching $3.49 billion in 2023, up 10% year-on-year, the US airline is now testing how much more travellers are willing to pay for premium perks.

The new fees, which take effect from Monday for new sign-ups, also coincide with fresh sign-up bonuses and expanded benefits including rideshare credits and award flight discounts. Existing members will retain current benefits until their plans expire.

Lounge fees rise to $1,400

United is launching a two-tier system for its United Club lounge memberships. Individual access now costs $750 annually or 94,000 loyalty miles, while a pass allowing entry for up to two guests will be priced at $1,400 or 175,000 miles.

Previously, customers paid $650 for membership, which included two guest passes.

While discounts were previously offered to elite MileagePlus members, the new structure standardises pricing.

Current members will retain their benefits until their memberships are up for renewal.

The changes apply to access across United Clubs and Star Alliance partner lounges globally, reflecting an industry trend of monetising once-included travel services.

Card fees increased to $695

Fees for United’s co-branded credit cards from JPMorgan Chase are also going up.

The United Explorer card will now cost $150 annually, up from $95. It includes a $60 rideshare credit.

The United Quest card will be priced at $350, up from $250.

New perks include $100 in rideshare credits, $200 in United travel credits, and two upgrades to extra legroom seats per year.

Meanwhile, the United Club Infinite Card is seeing the largest jump, going to $695 from $525.

The premium card includes United Club lounge access, $150 in rideshare credits, and offers a pathway to Premier 1K elite status through spending and bonus points accumulation.

These fee hikes are now in effect for new sign-ups from March 18, 2025, though the added benefits apply to existing cardholders immediately.

MileagePlus adds 17m members

United’s changes come as its MileagePlus programme continues to see substantial growth.

The airline has added around 17 million members to the scheme over the past two years.

Loyalty revenue is increasingly significant for airlines. United generated $3.49 billion in “other” revenue in 2023, according to its latest annual filing.

This category includes income from co-branded card usage, third-party partnerships, and airport lounge memberships.

The year-on-year increase was attributed mainly to higher spending on United credit cards and broader participation in the loyalty ecosystem.

With many airlines struggling to generate consistent profit from passenger fares alone, loyalty schemes have become a critical part of the business model, especially as customers continue to seek premium travel experiences post-pandemic.

Loyalty perks drive new customer acquisition

United’s strategy reflects broader efforts in the airline industry to bundle premium perks with financial products.

Airlines across the US and UK have steadily unbundled services that were once complimentary, including seat assignments and checked baggage, and are now offering them as part of premium credit card packages.

The changes to United’s credit card structure aim to improve customer value while increasing revenue through high-fee cards and expanded usage.

United has been developing the upgraded card portfolio for over a year and is counting on the enhanced rewards to continue driving sign-ups and card usage.

While the fee hikes may test consumer tolerance, the combination of added benefits and growing demand for travel perks suggests that United’s focus on loyalty monetisation is unlikely to slow anytime soon.

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Hyundai Motor Co (KRW: 005380) is in focus this morning following reports that the South Korean conglomerate plans on investing about $20 billion in the United States in an attempt to navigate new tariffs.

About a quarter of that investment will go to setting up a steel plant in Louisiana, as per sources that spoke with CNBC today on condition of anonymity.

Note that automakers are being broadly seen as notable victims of Trump’s new trade policies. Shares of Hyundai are currently down about 30% versus their 52-week high.

What we know about Hyundai’s upcoming US investment

Hyundai’s Louisiana facility will reportedly create some 1,500 new jobs. It will produce next-gen steel that Hyundai will use to manufacture its electric vehicles in the US.

The South Korean giant is expected to officially announce the investment as soon as later today.

The news arrives only days after Jose Munoz – the chief executive of Hyundai Motor said in an interview with Axios that the “best way for the company to navigate tariffs is to increase localization.”

Investors should note that Hyundai is currently a top competitor of Tesla in the US electric vehicle market. The automaker has one automotive plant in Georgia, one in Alabama, and is expected to announce plans of setting up a third one, also in Georgia, on Monday.

US is currently Hyundai’s largest sales region

Even without tariffs, the South Korean automaker struggled with profitability in its fiscal Q4.

Big incentives aimed at improving sales and higher warranty costs resulted in a more than 17% year-on-year decline in its profit in the fourth quarter.

Note that Trump tariffs are particularly significant for Hyundai as the US currently contributes the most to its overall sales. Last year, the car company sold 988,000 vehicles in the United States that translates to a 9% annualised growth.   

Hyundai stock could, therefore, recovery on the back of today’s announcement as it suggests the automaker is fully committed to maintaining its strength in the world’s second-largest auto market.

Should you invest in Hyundai stock today?

Hyundai shares may be worth owning following the recent pullback because the company guided for a total of 4.17 million car sales globally for 2025.

Despite macro headwinds, that indicates an increase from 4.14 million in 2024. The automaker has set aside nearly 17 trillion won ($11.76 billion) for new investment as well.

Last week, a Reuters report also suggested Hyundai was in advanced talks with General Motors over electric vans and pickup trucks, with possibility of a broader strategic alliance down the line.

While Hyundai shares haven’t done all that well in recent months, it’s worth mentioning that the automotive stock currently pays a lucrative dividend yield of 5.63% that further makes it attractive to own at current levels.

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