Robinhood Markets is introducing a new feature that allows customers to use an AI agent for stock trading and credit card purchasing decisions. Robinhood said users on its platform can now create a separate account for their AI agents and connect them to a dedicated wallet. While these agents would be able to read and analyze users’ portfolios to come up with trading strategies and suggest investments, they’ll only be able to access the pre-loaded balance in the dedicated wallet to place orders.
The trading platform is joining a crowded field of financial firms that have introduced AI tools into a range of services they offer individual customers, from stock research to automated investing management. The agentic trading and credit-card spending feature marks another step forward, said Abhishek Fatehpuria, Robinhood’s vice president of product management. “These AI agents for consumers have started to trade in the market,” Fatehpuria said. “One thing that we’ve learned from talking to our customers is that they want to give their agents the power of Robinhood, but in a very safe way.”
Robinhood Gold cardholders can also direct AI agents to transact on their behalf, but only after setting a monthly spending limit and opting into or out of required manual approvals, according to the statement. A cardholder may, for example, set up an alert for a coveted restaurant reservation, directing the agent to book it when it becomes available, or a fashion devotee may ask an agent to scour the internet for a sought-after handbag and purchase it if the total cost is below $2,500. Customers with Robinhood Gold cards will gain access to the capability first, with Platinum cardholders to be added after that card launches later this year.
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Robinhood (HOOD) stock climbed just shy of 2% higher on Wednesday, with investors not viewing the update as an event to cause volatility. Despite the latest innovation, Robinhood’s stock has slid 36% year-to-date, raising concerns about its performance amid a competitive and volatile trading environment. Most analysts maintain a positive outlook on Robinhood, with price targets significantly higher than the current $74.09. Bernstein and B of A Securities are particularly optimistic, setting targets at $130 and $154, respectively.
