You've likely heard plenty about how big tech companies are capitalizing on the rise of generative AI, but tech is not the only sector embracing this technological breakthrough.
Financial services companies across the sector are also embracing artificial intelligence (AI). Some are integrating it into their daily operations. Other financial companies are synergizing other growth initiatives with their pivot into AI-based finance.
Among hundreds of publicly traded financial stocks, these three stand out as the names making the biggest AI moves over the coming year: Robinhood Markets (HOOD +1.87%), JPMorgan Chase (JPM +0.81%), and PayPal (PYPL 0.39%).
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1. This month, Robinhood Markets quietly announced the launch of a new AI-based investment tool
A few weeks back, there was great hype and excitement surrounding Robinhood's announced expansion of its prediction markets hub. However, at the same time that the company made this announcement, it also quietly announced the upcoming launch of a new AI assistant, Cortex, on its platform.
NASDAQ: HOOD
Key Data Points
Cortex, which will become available for Robinhood Gold subscribers early next year, enables users to use generative AI to craft investing and trading ideas. Only time will tell, but this could become a popular way for retail investors to approach the market.
In turn, this could help spur increased trading volumes on the Robinhood platform. As you may recall, the company recently reported significant declines in trading volume for November. The Cortex launch, not to mention the prediction markets pivot, could help to reverse this concerning trend, which has resulted in a double-digit pullback in the Robinhood stock price.
2. JPMorgan Chase's AI integration could pay off in more ways than one
Among the major banks, JPMorgan Chase stands out as the one that has most aggressively embraced the AI revolution. In recent months, the money center bank has deployed agentic AI to help employees complete internal tasks efficiently, including investment banking pitch decks.
NYSE: JPM
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While the "payoff" from this endeavor is likely years away, the benefits of this big AI move extend beyond the potential for the bank to generate significant cost savings from the resultant labor efficiencies. By starting now rather than later, JPMorgan Chase could become the first major bank to benefit from AI. While competitors attempt to play catch-up, it could even gain ground in terms of market share by offering better service and/or more competitively priced financial products.
In turn, success with this endeavor could enable the stock to maintain its leading position in terms of valuation and market cap.
3. PayPal's stablecoin to play a big role in AI infrastructure project
There's no sugarcoating it: PayPal shareholders had a rough year in 2025. Shares in the fintech giant fell by over 30%, as the market maintains a "watch and wait" stance regarding an eventual turnaround. Still, although not certain, an AI-related potential catalyst has emerged, which could ultimately have a positive impact on the stock's performance.
NASDAQ: PYPL
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I'm talking, of course, about PayPal's recent announcement regarding its PYUSD stablecoin. As announced on Dec. 18, USD.AI, a provider of financing to AI companies, announced it will denominate its loans in PYUSD.
With the increasing integration of AI and crypto, this collaboration could have a positive impact on PayPal's growth and profitability moving forward. If growth concerns ease, the stock, trading for just 10 times forward earnings, could even receive a market rerating.
