Recent media reports claim that ChatGPT, an AI-powered chatbot, has dramatically beaten some of the most well-liked investment funds in the UK with its stock picking. According to a recent experiment by financial comparison website finder.com, a dummy portfolio of 38 companies chosen by ChatGPT earned 4.9% between March 6 and April 28, while 10 top investment funds saw an average loss of 0.8%. CNN covered the experiment’s findings and highlighted how ChatGPT might help retail investors make judgments.
The 10 most well-liked UK funds offered on the Interactive Investor trading platform were selected by Finder’s analysts as a standard for measuring the success of the ChatGPT-generated fund. The selection includes funds that were managed by HSBC and Fidelity. The experts gave ChatGPT the responsibility of choosing stocks based on standard criteria, such as picking businesses with a track record of growth and low debt levels. Based on these standards, ChatGPT chose corporations like Microsoft, Netflix, and Walmart.
Jon Ostler, the CEO of Finder, emphasized the potential for ChatGPT to influence the choices made by retail investors by predicting that it wouldn’t be long before many users attempted to exploit ChatGPT for financial advantage. This view was reflected in a 2,000 UK adults study performed by Finder, which found that 8% of respondents had already used ChatGPT for financial advice and 19% planned to.
Despite the fact that huge funds have long used AI to help them make investment decisions, ChatGPT has democratized this technology and made it available to the general population. However, according to a CNN story, a significant 35% of those polled said they would not think about using the chatbot to help them make financial decisions.
In addition to outperforming investment funds, a study published in April by researchers at the University of Florida showed that ChatGPT was able to forecast stock price changes for specific businesses with greater accuracy than certain simple analysis methods. This highlights the potential for chatbots with AI, like ChatGPT, to assist investors in making wise financial choices.