Robinhood now taps into artificial intelligence to enhance its investment platform by acquiring Pluto Capital, Inc., an AI-powered research platform.
This move, announced on Monday, July 1, aims to integrate advanced artificial intelligence capabilities into Robinhood's app, providing users with more sophisticated tools to manage their investments (via TechCrunch).
(Photo : Illustration by Scott Olson/Getty Images) CHICAGO, ILLINOIS - JUNE 06: In this photo illustration, the Robinhood Markets Inc. app is shown on a cell phone on June 06, 2024 in Chicago, Illinois.
New AI Tools to Enhance Data Analysis and Add Real-Time Insights
With Pluto's advanced data analytics capabilities, Robinhood users will soon benefit from quicker identification of market trends and investment opportunities.
Pluto utilizes large language models (LLMs) with real-time access to both global financial data and users' personal data, enabling it to process and interpret market information more efficiently.
This feature will enable investors to make informed decisions more quickly, optimizing their portfolios for better outcomes. The real-time analysis driven by AI will help balance growth and risk according to individual preferences, enhancing the overall user experience on the Robinhood platform.
Personalized Investment Strategies
One of the standout features of Pluto is its ability to offer highly customized investment recommendations.
By analyzing individual factors such as risk tolerance, investment goals, and historical behavior, Pluto's algorithms can tailor investment strategies to meet each user's unique needs.
This level of personalization is set to help investors make more informed decisions and optimize their portfolios for better outcomes.
Jacob Sansbury, the founder of Pluto, will join Robinhood as part of the acquisition. Sansbury's role will involve accelerating the adoption of AI technologies within the Robinhood platform.
Mayank Agarwal, Robinhood's VP of Engineering, highlighted that Sansbury's expertise in artificial intelligence and dedication to making finance accessible to everyone aligns with Robinhood's mission.
Agarwal stated, "We are thrilled to welcome Pluto and Jacob Sansbury to Robinhood. They have built an impressive platform that is highly regarded in the financial services industry."
Sansbury expressed his enthusiasm for joining Robinhood, saying, "Robinhood is the ideal destination to build products that democratize access to financial services like wealth management and financial planning through state-of-the-art AI. I look forward to innovating at the company which has inspired me and so many others."
Founded in 2021, Pluto quickly made a name for itself in the financial services sector. The company raised $4 million across multiple seed funding rounds, with a pre-money valuation of $12 million, according to Pitchbook.
Robinhood Faces Service Interruptions
In other news, Robinhood experienced a service interruption on Monday, affecting over 3,000 users according to Downdetector, a platform that tracks outages through user reports.
Robinhood acknowledged the issue and assured users that they were working to resolve it as soon as possible. "We're experiencing an interruption in service for some users and are working to resolve it as soon as possible," the company said in a post on X.
