More evidence that broad-market index funds remain unbeatable, even in the era of AI stock-picking

A new report finds that despite the growing use of artificial intelligence in investment research, selecting market-beating stocks has not become any easier this year. The finding adds to the long-running evidence that broad-market index funds — which simply track an entire market rather than betting on individual winners — remain difficult to outperform, even with increasingly sophisticated tools.

The result is notable because AI has been widely promoted as a way to sharpen stock selection. If AI made picking winners reliably easier, active managers using it would be expected to close the gap with benchmarks. The report suggests that has not happened, at least not yet.

For investors, the takeaway is less about any single stock and more about expectations. It is worth watching whether AI-driven strategies show improvement over longer periods, and how fees and turnover affect net returns. For now, the data echo a familiar theme: beating the market consistently is hard, and past results do not guarantee future ones.