AI Investment Strategies Have Surged Among Users

Individual investors are increasingly using AI to automate portfolios and avoid traditional advisory fees.

Updated on Oct. 13, 2026 in Investing

Isometric editorial illustration of modular golden weights on a geometric platform, representing automated index-tracking investment strategies. — Individual investors are increasingly adopting AI-driven automated strategies to manage index-tracking portfolios, bypassing traditional annual advisory management fees. AI Illustration. Upload story photo >

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The brokerage platform Alpaca has recorded a six-fold increase in individual users running parallel AI agent strategies over the last 18 months. Investors are utilizing language models and APIs to simulate and execute their own index-tracking strategies.

Why it matters

Many investors are attempting to replace traditional fee-based advisory models, which typically charge 1 to 2 percent annually, with lower-cost automated alternatives. This trend reflects a broader shift toward using technology to manage market exposure without human oversight.

Users on the Alpaca platform have seen a 6x increase in AI strategy activity compared to the prior 18 months. Investors are now running up to 100 concurrent agent-driven strategies to bypass traditional advisory fees.

The players

Alpaca

A brokerage firm providing API-first infrastructure that enables individuals to execute automated investment strategies.

The details

Investors are connecting language models to API-first brokerage infrastructure to automate the simulation and execution of investment strategies. By setting up these systems, users can manage index-tracking portfolios autonomously. This method allows individuals to potentially avoid the 1 to 2 percent annual management fees typically required by human-led firms.

The surge in AI agent usage occurred from April 2025 to October 2026.

Money Landscape

The adoption of AI strategies follows a pattern set by the rise of self-directed online discount brokerage in the 1990s. This development marks a shift from manual online trading toward fully automated, machine-managed portfolios.

If you are considering automated tools to reduce management fees, weigh the potential cost savings against the risks of technical errors or poor algorithmic performance. Discuss the appropriateness of DIY automated strategies with a qualified financial or tax professional before moving assets.

The takeaway

Automating your portfolio with AI can potentially eliminate the 1 to 2 percent annual fees charged by traditional advisers, but it requires active monitoring of your automated strategies. Before shifting your investments, review your current management costs and confirm if your broker supports API integration.