A startup called 42AI says its AI can predict what people will decide, and ten big brokerages already use it on their customers' calls and account activity.
An Israeli startup called 42AI has come out of stealth with $62.5 million and a bold claim: its AI can predict what a person will do before they decide, even in a new situation. Ten large brokerages already use it to guess how their customers will trade.
42AI calls its system a "behavioral world model." The company says people have underlying tendencies that hold steady even when their circumstances change. The model tries to measure those tendencies and show the probability that a person makes a certain choice. The company says it does not simply extend past actions into the future.
To get there, it studies how people react to events that seem unrelated to trading. Co-founder and CTO Ehud Ezra described the kinds of data it uses:
42AI claims 98% accuracy in predicting market trades. CEO Amit Gal-Or explained that this measures whether trading flows land inside a predicted range, not whether each trade was called correctly. He also cited an F1 score of 0.8 to 0.85 for trade direction and volume. F1 is a score that balances correct predictions against false alarms and missed events.
Gal-Or said revenue is above "seven figures" but gave no exact figure. He claimed one brokerage gained about $30 million in extra value through dynamic hedging. These are the company's own claims. The seed money came from the founders and Infinity Group over three years, not entirely from outside investors. Infinity was founded by Gal-Or's father, who is 42AI's chairman and a co-founder.
Gal-Or admitted there is a "natural ceiling," since the system cannot see everything a person experiences. Accuracy drops when it misses context, such as a trader acting on a friend's advice. The model also needs training on the rules of each new field. The company is eyeing gaming, fraud prevention and cybersecurity next.
On privacy, Gal-Or said the system does not need personally identifiable information and that "the model never knows who the person is." Still, it appears the company builds individual behavioral profiles from linked customer activity. Asked what stops a brokerage from using such foresight for its own benefit, Ezra called it "a valid concern." The founders pointed to regulations, monitoring and an internal ethics committee, but did not explain what, if anything, would stop misuse.
Your phone calls and account activity may be used to guess your next move, not just to serve you. For now this is aimed at brokerages. It is still fair to ask any financial provider how it uses your call recordings and transaction history.
Companies may soon use your calls and account activity to predict your choices, so ask your providers what they do with that data.
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