How AI is Changing Stock Market Picks
Artificial intelligence has become increasingly popular in the stock market world. Many people are looking to AI chatbots such as ChatGPT to help them pick stocks. A recent survey by The Motley Fool shows that nearly 50% of Americans surveyed are using ChatGPT for stock recommendations. While this technology is gaining interest from a broad spectrum of investors, there are still some inherent risks.
The Risks of Using AI Chatbots for Stock Picks
One of the risks is the potential for AI chatbots to "hallucinate" or create answers that have no basis in reality. ChatGPT is a large language model, not a search engine, so it's important to be careful about assuming that any result ChatGPT provides is accurate. Another risk is taking ChatGPT's insights as the only or correct insights. It's important to remember that it's only trying to pick out what might be the most probable outcome.
While AI chatbots can pick patterns and scrape information from different sources, they lack the ability to pick up on nuances such as the "BS factor." They don't have a true reasoning ability yet, but over time, they might get better at it. As companies like Meta continue to evolve and improve AI technology, we can expect more accurate and insightful results.
Interest in AI Chatbots for Stock Recommendations
Despite the risks, the survey shows that there is interest in using AI chatbots for investment advice. Higher-income Americans are more likely to use ChatGPT, and men are more comfortable relying solely on it for investing recommendations than women. Millennials tend to be trusting of ChatGPT, but they're still skeptical, as are Gen X and Gen Z respondents. However, baby boomers are the least likely to express confidence in the accuracy and trustworthiness of ChatGPT stock picks.
Conclusion
In conclusion, AI technology is changing the way people pick stocks. While there are still risks to consider, the use of AI chatbots like ChatGPT for stock recommendations is becoming more widespread. As AI technology continues to evolve, we can expect more accurate and insightful results.
