In 2024, AI has become about 10 times smarter, so I thought it could be quite good at stock selection. So I asked Googleartificial intelligence (AI) platform Gemini (formerly Bard) in the category five best stocks to buy in 2025. Here’s what it said.

Google says…

Predicting the “best” stocks is risky because the market is constantly changing. However, based on current trends and analyst opinion, here are five UK shares that have the potential to perform well in 2025:

1. Diageo: this global beverage giant owns such iconic brands as Johnnie Walker, Guinness, AND Smirnoff. It has a mighty history of growth and a resilient business model.
2. AstraZeneca: a leading pharmaceutical company with a solid portfolio of inventive medicines. AstraZeneca is well positioned to benefit from an aging global population and growing demand for healthcare.
3. Unilever: consumer goods giant with a diverse portfolio of brands, including: Dove, LiptonAND Ben and Jerry. Unilever’s mighty brand recognition and global reach make it a relatively stable investment.
4. NatWest Group (LSENWG): Britain’s second-biggest bank is benefiting from rising interest rates that are pushing up its lending spreads. However, the economic outlook remains uncertain, which may impact the bank’s results.
5. Shell: the oil and gas major is transitioning to renewable energy sources but still generating significant profits from its fossil fuel operations. Oil and gas prices are volatile, which creates both risks and opportunities for investors.

Conventional choices

Where to start? Perhaps it’s best to start by emphasizing that NatWest is not the UK’s second largest bank. But otherwise they look like fairly conventional stock picks, with an emphasis on consumer staples stocks that may outperform in interest rate cut cycles.

Similarly, Shell and AstraZeneca are the two largest companies by market capitalization in the market FTSE100. Shell is a diversified energy company, although it remains highly dependent on hydrocarbon revenues. It also trades at a marked discount to its Big Six American counterparts.

Meanwhile, AstraZeneca shares have fallen in recent months after an investigation began in China. However, several analysts suggest that this could be a good opportunity to buy shares of the biotech and pharmaceutical giant, with the price-to-earnings-to-growth (PEG) ratio falling to 1.4.

Why NatWest?

Gemini’s investment thesis may not be detailed, but there are compelling reasons to believe that NatWest could rebound strongly in 2025. Historically, banks have performed well during rate cut cycles, which could create favorable conditions for NatWest to continue growing.

Lower interest rates often stimulate lending and economic activity, increasing bank profitability through increased demand for loans. Moreover, banks employ hedging strategies to cushion the impact of interest rate fluctuations, and these strategies can actually raise margins when central banks cut rates.

While challenges remain, including dealing with economic uncertainty and resurgent inflation, partly driven by Labour’s first budget, the potential for improved performance in a supportive monetary environment makes NatWest worth watching.