B3 Launches AI Assistant to Educate Brazilian Investors

B3, Brazil's stock exchange, has introduced a new AI assistant designed to help Brazilians better understand and navigate the world of investing. This innovative tool aims to address the surge in individual investors in Brazil, which has grown from about 600,000 in 2017 to approximately five million today, with millennials making up almost half of this demographic, according to Source LATAM.

Empowering New Investors

The AI assistant, dubbed B3's copilot, does not provide stock tips, investment advice, or broker recommendations. Instead, it helps users understand financial terminology and answers questions curated by B3's experts. It covers topics such as stocks, bonds, and how to find a broker, making complex financial instruments accessible to novice investors.

Christianne Bariquelli, Superintendent of Education at B3, emphasized the importance of this tool for new and potential investors. "This solution is for Brazilians who already invest but are at the beginning of their journey or people who want to invest but lack the information they need," she said. The AI assistant aims to provide safe, reliable information to help users make informed decisions.

Factors Driving Investment Interest

Bariquelli attributes the increased interest in investing to several factors: improved financial education, easier access to digital brokerage accounts, and historically low-interest rates between 2018 and 2021. The median investment amount has decreased from 4,300 reais in 2021 to 2,200 reais at the end of 2023, indicating that investing is becoming more accessible to the middle class.

Deposit savings accounts, known as Poupanças, have traditionally been popular due to high-interest rates aimed at controlling inflation. However, with inflation subsiding and interest rates falling, Brazilians are seeking alternatives with better returns.

AI Assistant's Role

Marcos Garavini Siffert, an engineer and investment club coordinator, highlighted the AI assistant's potential to help new investors feel confident enough to explore investment opportunities beyond traditional savings accounts. The assistant provides high-quality information, similar to reports available from private banks, but accessible to all.

B3's educational offerings include articles, videos, and online courses. The AI assistant complements these resources by providing instant answers to specific questions, such as "what are stocks?" or "how can I save to invest?" This tool helps users understand financial terms they encounter during their learning journey.

Continuous Improvement and Ethical Standards

Marcos Albino Rodrigues, B3's Director of Architecture, Data, and Technological Innovation, explained that the AI assistant is continuously retrained to improve its responses and ensure they remain within B3's guidelines. The assistant is designed to educate without making investment suggestions, maintaining a layer of ethics to prevent discriminatory behavior.

The AI assistant, developed in collaboration with Microsoft using Azure OpenAI Service, offers a more advanced and natural conversation experience compared to traditional chatbots. Launched in February, it already supports 10,000 users daily and has received positive feedback on social media.

Future Prospects

B3 is exploring ways to expand the AI assistant's reach, such as providing a widget for banks or brokerages to embed on their websites. This initiative aims to increase investment in stocks and bonds, which is crucial for the growth of Brazil's capital markets and economy.

According to a World Bank report, strong capital markets are essential for economic growth, supporting businesses, and reducing poverty. B3 hopes that more investors will consider Brazilian treasury bonds, which offer better returns than traditional savings accounts.

"We believe that financial education and new investors are directly connected to making the Brazilian economy better," Bariquelli stated. "When you have access to capital, companies can grow, bring new employers, and people can have savings."

Top image: Christianne Bariquelli, Superintendent of Education at B3, and Marcos Albino Rodrigues, B3’s director of architecture, data, and technological innovation, helped develop the Brazilian stock exchange’s AI assistant that answers investors’ questions. Photo by Avener Prado for Microsoft.