Finder.com conducted an experiment which found that an AI-powered chatbot called ChatGPT performed better than some of the most popular investment funds in the United Kingdom. Between March 6 and April 28, ChatGPT’s portfolio of 38 stocks gained 4.9%, while ten leading investment funds recorded an average loss of 0.8%.
ChatGPT selected the stocks based on commonly used criteria like low debt and growth history. Then, the chatbot picked Microsoft, Netflix, and Walmart, among other companies. While investment funds have been using AI for decision-making for years, ChatGPT makes the technology accessible to the public, enabling retail investors to make informed decisions.
According to a survey by Finder, 8% of UK adults have already used ChatGPT for financial advice, while 19% said they would consider it. However, 35% of respondents said they would not consider using the chatbot for making financial decisions.
Although ChatGPT’s performance was impressive, Finder’s CEO, Jon Ostler, advised individual investors to do their research or speak to a qualified financial adviser for the “safe and recommended” approach. In addition, he cautioned that it is still too early for investors to rely entirely on AI for making financial decisions.
Nevertheless, Ostler stated that the “democratization of AI seems to be something that will disrupt and revolutionize financial industries.”