SINGAPORE: Stock brokerages are leveraging artificial intelligence to pick and analyse stocks in an attempt to draw tech-native young investors.

While doing so, they find they have an audience among more seasoned users as well.

One of those leading the charge is OCBC Securities, which in June launched AI Oscar, short for AI OCBC Securities’ Customer Artificial Intelligence Radar.

The stock-picking tool uses deep-learning to identify and predict stock price movements, unlike other AI programs that make decisions based on a set of pre-determined criteria, said OCBC Securities managing director Wilson He.

Deep learning is the process where artificial neural networks - algorithms that mimic the way the human brain works - process data from multiple sources and analyse the information in real time.

Other online trading platforms are also using predictive analytics to help forecast market trends and identify stock picks for customers.

All the brokerages have developed some form of educational content for investors to help them comprehend difficult financial concepts.

Tiger Brokers integrated these capabilities with TigerGPT, an AI-powered chatbot in the Tiger Trade app.

Its market strategist James Ooi said this makes it easier for a Tiger user to read up on information related to the stocks he is interested in, the companies’ financial numbers and trending market topics. The chatbot also answers any queries that investors have.

As for FSMOne.com, its general manager Joshua Chim said the online investment platform has a stock/exchange-traded fund selector function, which helps to filter choices based on criteria like desired investment themes.

This narrows down the selection process - from the whole universe of Singapore Exchange-listed stocks to a certain number of companies, for example.

OCBC Securities said AI Oscar takes stock-picking and analysis to the next level as it learns from an investor’s behaviour, his trading patterns, his risk appetite and his past trading activity.

It then comes up with a personalised report of 15 different stock ideas for each customer every week - five each for Singapore, Hong Kong and United States - the three most popular markets among Singapore investors.

He of OCBC Securities added that each stock recommendation comes with a research report, price and company-specific information.

Jayzee Poh, 32, who has been investing in the markets for the past nine years, said he started using AI Oscar two months ago to supplement his decision-making.

“This has significantly reduced the amount of time I spend on research, and I am able to stay informed of market movements,” he said.

 - ANN