Every day brings a new demonstration of the power of ChatGPT, a natural language program developed by OpenAI. For now, excitement levels remain high.
Naturally, we are excited about the potential of artificial intelligence (AI) to transform the world and enrich investors in the process. But so far, I don’t know if ChatGPT still has active investment management, customized financial advice, or the cyber powers to actually replace journalists (conflict of interest acknowledged).
The last part may be wishful thinking, but we are open minded and ready to learn how we can enhance what we are already doing. As part of the week, I experimented with search engines.
My colleague John Rekenthaler has already laid out the pace of ChatGPT in a recent column, and his conclusions are good for explaining the basics of investing, but the finer points are well grounded. I was told no.
“In a single day, ChatGPT users can generate enough content to fill an investment basics website. […] While sometimes imperfect, the general logic is correct, but the details require attention,” he wrote.
Commentators are a common element of Morningstar’s website, useful for new readers and those looking to brush up on their knowledge. Headings usually start with “What is xxx?” and covers a wide range of topics. Automating this process saves time, but you should check your homework. This is where ChatGPT’s summarizing skills come to the fore.
My colleague Sunniva Kolostyak and I threw a ball in ChatGPT to see how it returned. Our first salvo was “wis a good basic investment strategy? ” The answer was indeed Morningstar: Diversify, keep costs low, invest long term, be disciplined, and consider your risk tolerance. I have nothing to dispute here, so I decided to be more specific and challenge artificial intelligence.
Q. Which companies will be the future leaders in AI?
A. As an AI language model, I have no access to the future and cannot predict which companies will become leaders in AI. There are several leading companies. These companies invest heavily in AI R&D and are at the forefront of progress in the field. However, the AI industry is still relatively young, and new players may emerge as leaders in the future.
Here it is clear that the word “future” is a stumbling block. This is disappointing for those who want certainty in their algorithms, but it’s comforting from an ethical point of view. Fund managers, investors, and the media are all futurists to some degree, but at best these are all educated guesses. Still, we managed to get the program off the fence and name a few companies.
Q. Which areas of AI are the most promising?
A. AI is a broad field and there are several areas with great potential. Here are some of the most promising areas within AI: [NLP, Computer Vision, Deep Learning, Reinforcement Learning, and General Adversarial Networks].
The word “promise” is vague enough for this risk-averse application that it might work. I didn’t know about General Adversarial Networks, so it was a triumph of technology and taught me something new. Here you can see another strength of ChatGPT, the ability to list favorites concisely without having to select them. We also found that the application likes follow-up questions. It’s like asking an evasive parent a secondary question right off the bat to stop them from changing the subject.
Q. Who is the largest company developing the above technology? Please give an example.
A. [Here we have a long list of companies associated with the “promising” areas above, including Big Tech names you know already – Google, Facebook, Nvidia – but we also get a glimpse into some project-specific names: Deep Dream, StyleGAN, TensorFlow, PyTorch, MXNet and CNTK].
I specifically avoided the word “leading” here, but ChatGPT repeated this twice. This sounds like a subjective claim for such a cautious program. Of course, I’m not saying “buy these companies” (and neither are we!), but this at least gives investors a specific set of companies to add to their “watchlist.” . List of funds dedicated to this theme.
Then I decided to liven things up a bit. We asked a more candid question that an investor today might type into a search engine. It could also headline Morningstar.co.uk, or ask the fund his manager.
Q. What AI opportunities should I invest in?
A. As an AI language model, I am not authorized to provide financial advice or recommendations for any particular investment opportunity.
Perhaps inevitably, we found the boundaries we were really looking for. ChatGPT is now offering some general suggestions and showing recognition that they are trying to build a thread. All these questions follow in order. Give me this sensible approach.
Once you have identified areas of AI that interest you, you can research the companies that are leading in those areas. We recommend looking for a company with a strong track record of AI innovation and development, solid financial standing and a clear vision for the future.
It also presents some potential risks that are difficult to agree with. “Although AI has great growth potential, it is also a rapidly changing field with many uncertainties, and investments in AI can be more volatile than investments in more established industries. there is.”
I’m ready to roll the dice again. I need to overcome ChatGPT’s conservatism, so I’m telling you I’m already committed. .
Q. I want to invest in AI. Should I choose passive or active funds?
A. (I’m getting some very general comments about the strength of active/passive funds here)
Ultimately, the decision to invest in passive or active funds depends on individual investment goals and risk tolerance. It is important to do your research and consider all options before making an investment decision. You may also consult a financial advisor to help you determine the best approach for your unique situation.
These are all “safe” answers, but they are less AI investment specific than I would have liked. We pose this last, rather impudent question.
Q. Are AI ETFs a good investment?
Do your own research and get a list of potential risks as well as regular warnings to seek advice. One of them is important for thematic investing. “AI is a rapidly changing field, and companies Today’s leader may not be tomorrow’s leaderInvesting in an AI ETF means investing in an ever-evolving industry. ”
After a few near misses, ChatGPT got to the heart of the matter. Kenneth Lamont, Passive Expert at Morningstar, explains in an overview of the topic:
In summary, this exercise was helpful, but harder than I believed. ChatGPT has been tricked into believing it can pass the CFA exam, but it only increased my understanding of how to invest in artificial intelligence. Our Special Report Week is likely to offer a more rounded experience.
Of course, investors (and readers) are more than welcome to experiment for themselves, but first impressions are that ChatGPT is currently just an “investor tool” in addition to the many that already exist.
