If you plan to start investing in 2026, you may see apps that use AI. This article explains what AI features in an investing app can and cannot do, and what to ask before you choose one. All investing involves risk, including loss of principal.

What Does AI in an Investing App Mean?

AI features can summarize market data, explain concepts, and answer questions quickly. They can also be wrong. AI-generated information can rely on data that is inaccurate, incomplete, or out of date, and regulators advise against relying solely on it when making investment decisions [1].

How Alinea Uses AI

Alinea Invest, Inc. offers a mobile investing app. Investment advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training.

• Allie. Allie, Alinea’s AI assistant, is available in the Alinea app. It can explain your holdings, market news, and financial terms in plain language. At your request, Allie can also start a deposit, withdrawal, buy, or sell, and you confirm every transaction before it runs. Allie provides educational research and feedback only, does not provide investment advice or recommendations, and can make mistakes.
• Model portfolios. Automated Investing does not use AI to build your portfolio. Alinea asks about your risk tolerance, assigns you one of four risk-based model portfolios of ETFs by algorithm, and rebalances it monthly. The portfolios are the same for every investor at a given risk level, and they are not built individually for you [2].
• Investing Playlists. Playlists are collections of stocks and ETFs organized around themes or interests. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and themed portfolios may be less diversified and more volatile.
• Recurring investing. You can set a fixed amount to invest on a schedule, including into individual stocks, an approach known as dollar cost averaging. It does not assure a profit or protect against loss in declining markets.

What to Ask Before You Choose

• What does the AI do, and what does it not do? Ask who makes the final decision.
• Can it be wrong? Ask how the app handles errors and what limits it has.
• How are portfolios chosen? Ask whether a person reviews changes and how often they happen.
• What does it cost? Compare fees, since they can reduce your returns.

Is an AI Investing App Right for You?

AI features can simplify some tasks, but they are not a substitute for your own judgment, and they do not reduce risk. Whether an app is suitable depends on your goals, time horizon, and risk tolerance. Spreading your money across different investments can reduce the impact of any one falling, but diversification can’t guarantee against loss [3].

Brokerage accounts are held at DriveWealth LLC, member FINRA/SIPC, which is not affiliated with Alinea. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) if the brokerage firm fails financially. It does not protect against a decline in the market value of your securities [4]. Bank accounts are linked through Plaid, Inc., a third party not affiliated with Alinea, and we do not store your online banking credentials. SSL and 256-bit encryption help protect your data.

Frequently Asked Questions

What is a 2026 New Year’s resolution related to investing?

It is a goal you set for the year, such as starting to invest or investing regularly.

How long does it take to see results from AI investing?

There is no set timeline, and AI does not assure results. Returns depend on markets and your investments, and they can be negative.

Does Allie build my portfolio?

No. Alinea assigns model portfolios by algorithm from your risk tolerance answers. Allie provides educational information and does not provide investment advice or recommendations.

Disclosure

Advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training. Brokerage and custody services are provided by DriveWealth LLC, an unaffiliated registered broker-dealer and member of FINRA/SIPC.

This content is for informational purposes only and is not an offer, solicitation, or recommendation to buy or sell any security. All investing involves risk, including loss of principal. Past performance does not guarantee future results. Allie is educational only, does not provide investment advice, and can make mistakes. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and can be wrong. Alinea oversees the algorithm and monitors it for anomalies. Themed portfolios may be less diversified and more volatile. Alinea is not affiliated with the sources listed below, and their inclusion is not an endorsement. Alinea charges a subscription fee for its advisory services; see Item 5 of Form ADV Part 2A. Alinea’s support team handles questions about using the service only and does not provide investment advice.

See our Form ADV Part 2A, Wrap Program Brochure, and Form CRS at www.alinea-invest.com/legal/home. For more on Allie, see AI Allie – Disclosures & Terms of Use at www.alinea-invest.com/legal/ai-allie-disclosures-terms-of-use.

Sources

[1] SEC Office of Investor Education and Advocacy, NASAA, and FINRA, “Artificial Intelligence (AI) and Investment Fraud,” investor alert, January 25, 2024 (finra.org, investor.gov).

[2] U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Investor Bulletin: Robo-Advisers, February 23, 2017 (investor.gov).

[3] U.S. Securities and Exchange Commission, Investor.gov, “Diversify Your Investments.”

[4] Securities Investor Protection Corporation (SIPC), What SIPC Protects (sipc.org).

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