According to a recent report by the Financial Times (FT), a portfolio of 38 stocks made by an artificial intelligence chatbot called ChatGPT has outperformed the 10 most popular funds in the UK. The chatbot’s portfolio generated a profit of 4.9% over an 8-week period, while the top 10 UK funds booked an average loss of 0.8% during the same period.
According to a recent report, the leading funds included in the “top funds” are Terry Smith’s Fundsmith Equity, Vanguard, Fidelity, and HSBC. The investing principles of these funds served as the basis for the development of a chatbot.
The study commissioned by finder.com revealed that 19% of UK adults are open to the idea of seeking financial advice from ChatGPT, while 8% have already consulted the chatbot for financial advice.
The CEO of finder.com, Jon Ostler, stated in a quote by FT that the democratization of artificial intelligence may cause disruption and revolutionize the financial industries. Nevertheless, he also expressed caution, stating that it is still too early for consumers to place full trust in AI for finance and investment matters.
PortfolioPilot, an AI-powered ChatGPT plugin, has been increasingly employed in the investment sphere since its inception in November of the prior year. This plugin furnishes investors with gratis investment recommendations by simply copying and pasting their portfolios. According to a survey that The Motley Fool, an investment advisory service, released earlier this week, a hefty 47% of adults domiciled in the US have already taken advantage of the aforementioned software to pick stocks. Furthermore, almost 69% of these adults are amenable to considering the employment of this innovation anew in the days to come.
The study also found that among high-income Americans, 77% of those surveyed said they have utilized ChatGPT for picking stocks.
Overall, the use of AI in the finance industry has been growing rapidly in recent years. AI-powered tools such as ChatGPT and PortfolioPilot are designed to help investors make informed decisions and improve their investment outcomes. While the technology is still in its early stages, it has already demonstrated its potential to outperform traditional investment methods. However, as Ostler pointed out, consumers must remain cautious and not fully rely on AI for investment advice. As technology continues to evolve and improve, it is likely that AI will play an increasingly important role in the finance industry.
