ChatGPT AI Outperforms Investment Funds: An Experiment by Finder.com
A chatbot powered by artificial intelligence called ChatGPT has beaten some of the most popular investment funds in the UK, according to an experiment conducted by financial comparison site finder.com. The experiment shows that a basket of 38 stocks selected by ChatGPT gained 4.9% between March 6 and April 28, whereas 10 leading investment funds lost an average of 0.8% over the same period.
The fund selected by ChatGPT was selected based on a low level of debt and a track record of growth, and includes Microsoft, Netflix and Walmart. In contrast, a typical investment fund pools money from several investors and is managed by a fund manager who decides how to invest that money.
While major funds have used AI to support their investment decisions for years, ChatGPT has put this technology in the hands of the general public, with the potential to guide the decisions of retail investors.
Of the 2,000 UK adults surveyed by Finder, 8% had already used ChatGPT for financial advice, while 19% said they would consider doing so. Yet a bigger percentage of 35% said they would not consider using the chatbot to help them make decisions about their money.
Although fund managers may be looking nervously over their shoulders, the "safe and recommended" approach for individual investors is to conduct their own research or speak to a qualified financial adviser, warns Finder CEO Jon Ostler. He cautions that it's too early for investors to trust AI with their finances.
However, Ostler suggests that "the democratization of AI seems to be something that will disrupt and revolutionize financial industries."
