ChatGPT, the natural language program developed by OpenAI, has been making headlines recently for its potential to transform the world with artificial intelligence (AI). Morningstar decided to put ChatGPT to the test by asking some investing questions related to AI. Here are the insights gained from the experiment:
A General Investment Strategy
When asked about a good basic investment strategy, ChatGPT suggested that diversification, low costs, long-term investment, discipline, and risk tolerance are essential for any investment strategy.
The Promising Areas within AI
AI is a broad field, and there are several areas within it that show great promise, according to ChatGPT. These include Natural Language Processing, Computer Vision, Deep Learning, Reinforcement Learning, and General Adversarial Networks.
Companies Leading the AI industry
ChatGPT named several companies that are leading the AI industry, including Google, Amazon, Microsoft, IBM, Facebook, and Baidu. Additionally, there are some project-specific firms such as Deep Dream, StyleGAN, TensorFlow, PyTorch, MXNet, and CNTK.
Investment Opportunities and Risks in AI
ChatGPT's response to specific investment opportunities related to AI was to avoid providing direct recommendations. The program suggested identifying the areas of AI that interest you and then researching the companies that are leading in those areas. It also emphasized the importance of considering all options and risks before making investment decisions and consulting with a financial advisor.
One of the risks of thematic investing in AI, according to ChatGPT, is that the industry is rapidly changing, and companies that are leaders today may not be leaders tomorrow, making investments in AI ETFs potentially volatile. Therefore, it is crucial to continually do research and keep up with industry developments.
Conclusion
While ChatGPT proved useful in broadening the understanding of investing in AI, it is clear that the program still has limitations. It is not prepared to offer direct financial advice or provide specific investment recommendations. However, it can be a helpful tool for investors to gain a better understanding of the potential opportunities and risks associated with investing in AI.
