How hard is it to beat the market? Even AI can’t do it.

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Many ETFs and stock pros use artificial intelligence in an effort to get an edge. But most still don’t outperform their benchmark.

Last Updated: July 5, 2025 at 12:40 p.m. ET
First Published: July 2, 2025 at 3:39 p.m. ET

Artificial intelligence is an amazingly powerful tool for investing — but it’s no match for human-run investment management.

Here’s why: If one investment firm was the only one of its Wall Street peers utilizing AI, it’s conceivable that it could beat the market. But when nearly all firms are using the technology, as is becoming the case, then the arithmetic of active management guarantees that the average manager will lag the market.