Important points
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Robinhood Markets has garnered a lot of attention for its big foray into prediction markets, but the financial services company also just launched a new artificial intelligence (AI) investing tool.
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JPMorgan Chase & Co. is actively integrating AI into its operations, which could reduce costs and improve competitiveness for money center banks.
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PayPal just made a major AI announcement related to its PYUSD stablecoin.
You've probably heard a lot about how big tech companies are capitalizing on the rise of generative AI, but they're not alone in embracing this technological advancement.
Financial services companies across all sectors are also embracing artificial intelligence (AI). Some companies are incorporating it into their daily operations. Other financial companies are pivoting to AI-based finance and synergizing it with other growth initiatives.
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Among the hundreds of publicly traded financial stocks, three stand out as the ones poised to make the biggest moves in AI over the coming year. robinhood market(NASDAQ:Food), JP Morgan Chase(NYSE:JPM)and paypal(NASDAQ:PYPL).
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1. This month, Robinhood Markets quietly announced the launch of a new AI-based investment tool
A few weeks ago, there was a lot of hype and excitement surrounding Robinhood's announcement of the expansion of its Prediction Markets Hub. However, at the same time as this announcement, the company also quietly announced that it will soon release a new AI assistant called Cortex on its platform.
Cortex is expected to be available to Robinhood Gold subscribers early next year and will allow users to use generative AI to generate investment and trading ideas. Only time will tell, but this could become a common way for retail investors to approach the market.
This could drive an increase in trading volume on the Robinhood platform. As you may recall, the company recently reported a significant drop in trading volume for November. The launch of Cortex could help reverse this worrying trend that led to a double-digit decline in Robinhood stock, not to mention a pivot in prediction markets.
2. JPMorgan Chase's AI integration could pay off in multiple ways.
Among major banks, JPMorgan Chase stands out as one of the most aggressively embracing the AI revolution. In recent months, Money Center Bank has deployed agent AI to help employees efficiently complete internal tasks such as investment bank pitch decks.
Although the “wins” of this effort are likely years away, the benefits of this large-scale AI effort go beyond the potential for banks to generate significant cost savings through the resulting labor efficiencies. JPMorgan Chase could become the first major bank to benefit from AI if it starts now rather than later. They may even gain market share by offering better services and more competitively priced financial products while competitors try to catch up.
If this initiative is successful, the company could maintain its leading position in terms of valuation and market capitalization.
3. PayPal’s stablecoin will play a big role in AI infrastructure projects
2025 was a tough year for PayPal shareholders. Shares of the fintech giant have fallen more than 30% as the market remains in a “wait-and-see” attitude about an eventual turnaround. Still, although far from certain, potential AI-related catalysts are emerging that could ultimately have a positive impact on stock performance.
Of course, I'm talking about PayPal's recent announcement. PYUSDstablecoin. As announced on December 18th, USD.AI, which provides loans to AI companies, announced that its loans will be made in PYUSD.
As AI and cryptocurrencies continue to integrate, this partnership could have a positive impact on PayPal's future growth and profitability. The stock, which trades at just 10 times forward earnings, could even receive market recognition if growth concerns ease.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Thomas Neal has no position in any stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase & Co. and PayPal. The Motley Fool recommends the following options: A January 2027 $42.50 long call on PayPal and a December 2025 $75 short call on PayPal. The Motley Fool has a disclosure policy.
