London (CNN) The basket of stocks selected by ChatGPT, an artificial intelligence (AI)-powered chatbot, far outstrips some of the UK’s most popular investment funds.
Between March 6 and April 28, dummy portfolios of 38 stocks rose 4.9%, while 10 major investment funds lost an average of 0.8%, according to an experiment conducted by financial comparison site finder.com. Recorded.
“It won’t be long before many consumers start using it.” [ChatGPT] For financial gain,” Finder CEO Jon Ostler said in a statement earlier this week.
in the same eight weeks, S&P 500 (SPX) An index that tracks the 500 most valuable companies in the US rose 3%. The European equivalent, the STOXX Europe 600 index, rose 0.5% in the meantime.
A typical investment fund is overseen by a fund manager who raises money from multiple investors and decides how that money is invested.
Finder analysts have taken the 10 most popular UK funds on trading platform Interactive Investor as benchmarks to assess the performance of ChatGPT-generated funds.Management fund HSBC (HSBC) and Fidelity were chosen.
ChatGPT logo on smartphone
Analysts asked ChatGPT to select stocks based on commonly used criteria, such as choosing companies with low debt and a track record of growth. microsoft (MSFTMore), netflix (NFLX) and walmart (WMT) was among the companies selected.
While major funds have been using AI to support investment decisions for years, ChatGPT has the potential to put this technology into the hands of the public and guide retail investors’ decision-making.
According to a survey of 2,000 UK adults conducted last week by Finder, 8% are already using ChatGPT for financial advice and 19% say they would consider using it.
But a much higher 35% said they wouldn’t consider using a chatbot to help. Make decisions about their money.
Still, “fund managers may be starting to get nervous over their shoulders,” Osler said.
financial turmoil
In a study published in April, researchers at the University of Florida found that ChatGPT could predict the behavior of a given company’s stock price more accurately than more basic analytical models.
Since research firm Open AI began accessing ChatGPT in December, chatbots have wowed users with their ability to provide long, sophisticated responses to questions.
Its potential uses, from writing high school essays to providing medical instruction, are that the technology could provide misleading information, help students cheat on exams, or keep real people out of work. This raises concerns that there is a possibility that
Osler at Finder said the “safe and recommended” approach for retail investors is to do your own research or consult a qualified financial advisor. He warned that it is too early for investors to trust AI with their money.
Nevertheless, “the democratization of AI appears to be disruptive and revolutionary in the financial industry,” Ostler said.
