ChatGPT Vs. Fund Manager: Here's Who Picked Stocks Best
ChatGPT, an Artificial Intelligence (AI) platform created by OpenAI, has been gaining popularity in recent times for its ability to answer a wide range of questions, and even give real-world advice based on data scraping. While its use-cases include answering to your boss, travel planning, and more, its application in managing investments can take things a notch higher.
A recent experiment by online comparison platform, Finder.com, put ChatGPT to the test by asking it to choose 38 companies on the London Stock Exchange for optimal growth over eight weeks. These companies ranged from tech giants like Microsoft (MSFT), Alphabet (GOOGL), and Coca-Cola (KO) to semiconductor-related firms such as ASML (ASML) and Taiwan Semiconductor Manufacturing (TSM).
The findings of the experiment were startling. While the top 10 funds on the Interactive Investor platform fell by 0.78% by the end of the experiment on April 28, the ChatGPT-generated fund had gained 4.93%. Comparatively, the S&P 500 rose about 3% in the same period.
According to Finder.com's Matt McKenna, "The ChatGPT fund has outperformed the top 10 most popular funds for 34 of the 39 market days the experiment has been running, or 87% of the time."
Although the experiment was limited in its scope, the strong performance of ChatGPT could inspire many to experiment with it for investment advice. A separate Finder.com study found that although only 8% of people used ChatGPT for financial advice in 2023, nearly one in five is interested in trying it.
While it is too early to draw any conclusions from the experiment and the test portfolio, ChatGPT's performance has garnered interest from investors and consumers, with many experimenting with it for financial gain.
