ChatGPT-Powered AI Chatbot Outperforms Leading Investment Funds

ChatGPT, a chatbot powered by artificial intelligence (AI), has outperformed some of the most popular UK investment funds. Between March 6 and April 28, a dummy portfolio of 38 stocks chosen by ChatGPT increased by 4.9%, while 10 leading investment funds suffered an average loss of 0.8%. The study, performed by financial comparison site finder.com, suggests that it won’t be long until consumers use ChatGPT for financial gain.

The benchmark for this analysis was the 10 most popular UK funds on Interactive Investor trading platform. The funds were picked by leading companies such as HSBC and Fidelity. The analysts used common qualifying criteria to choose stocks, like a low level of debt and a positive track record of growth, including companies like Microsoft, Netflix, and Walmart.

Using AI To Revolutionize Finance

AI has revolutionized the way people look at investments. Although major funds have used AI for years to make investment decisions, ChatGPT has allowed ordinary people to use it too. The survey conducted by finder.com uncovered that 8% of UK adults had already used ChatGPT for financial advice, while 19% were considering using it. However, the survey also showed that 35% were not interested in using the chatbot to guide their investment decisions.

Even the University of Florida found that ChatGPT can predict the stock price movements of specific companies more accurately than some of the more “basic” analysis models. While this is quite an achievement, there remains a concern that the technology could provide misleading information and even replacement of real human beings from their jobs. Consequently, Ostler at Finder said the safe approach for individual investors was to do their own research or seek advice from qualified financial advisers. It was too early for investors to trust AI with their finances.

Editor Notes

ChatGPT, an AI chatbot has displayed a promising show of out-performance by a dummy portfolio of stocks it selected compared to investment funds in the UK. Although its potential to support human decisions is on the rise, it is vital that investors proceed with caution before using AI exclusively as the safe recommended approach for individual investors was to conduct their research or speak to a qualified financial advisor. The democratization of AI in the financial industry is a significant disruption that will ultimately impact the industry positively when caution is taken. For more news on AI and other emerging technologies, visit the GPT News Room.

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