ChatGPT 'Portfolio' Outperforms Leading UK Funds: An Experiment by Finder.com
According to an experiment conducted by Finder.com, a selection of stocks picked by the artificial intelligence chatbot ChatGPT has delivered better performance than some of the UK's leading investment funds. Analysts at the personal finance comparison site requested ChatGPT to create a theoretical fund of more than 30 stocks, following a range of investing principles taken from leading funds. In the eight weeks since its creation, the portfolio of 38 stocks has risen 4.9%, compared with an average loss of 0.8% for the ten most popular funds on UK platform Interactive Investor. The list of funds includes Terry Smith's Fundsmith Equity and a range of UK, US, and global funds from Vanguard, Fidelity, and HSBC.
Jon Ostler, chief executive of Finder.com, said, "It's not taken the public long to find creative ways of getting ChatGPT to help them in areas where it shouldn't technically do so. It won't be long until large numbers of consumers try to use it for financial gain."
Some 19% of UK adults surveyed by Finder.com said they would "consider getting financial advice" from ChatGPT, while another 8% say they had already taken financial advice from the chatbot. However, Ostler said it was too early for consumers to trust the AI when it came to their own finances.
The democratisation of AI seems set to disrupt and revolutionise financial industries, but the research indicated that half of UK investors used social media for investment advice. Ostler said that spending time researching via known primary sources or a qualified adviser would be the safer and recommended approach, but it may not be the case forever. He argued that the fund managers might be starting to look nervously over their shoulders.
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