Chatgpt is approaching his third birthday, and within three years at least 10 retail investors on the chatbot started to trust because it feeds a tree in the Robo-advisory market, even fans say that it is a risky strategy that traditional advisers cannot yet replace.
Thanks to artificial intelligence, everyone can select, control and obtain investment analysis that was once only available for large banks or institutional investors.
The Robo-advisory market-under which all companies that automated, offer algorithm-driven financial advice, such as fintech, banks and asset managers-Zal are expected to grow to $ 470.91 billion in income in 2029 in 2029 of $ 61.75 billion last year, according to an increase in the study and the market of the investigation and the market of the investigation and the market of the investigation and the market of the investigation and the market of the research and the market.
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Jeremy Leung, who spent almost two decades on analyzing companies for UBS, uses Chatgpt to chase shares for his multi-asset portfolio since he left the Swiss bank at the end of last year.
“I no longer have the luxury of a Bloomberg (terminal), or that kind of market datas services that are very, very expensive,” said Leung.
“Even the simple chatgpt tool can do a lot and reply many of the workflows that I used to do,” he said, warning that such a tool could miss some crucial analyzes, because it does not have access to data behind a payment wall.
Leung is not alone. The industry is growing rapidly and exponentially.
About half of the retail -investors say they would use AI tools such as Chatgpt, whose launch in November 2022 the AI tree affected the markets, or Google’s Gemini to choose or change investments in their portfolio, and 13% of Hen already uses this tools under Broker Etoro, according to a study of broker Etoro.
In the UK, 40% of the respondents of a survey said by Comparative Company Finder that they used chatbots and AI for advice for personal finances.
Chatgpt itself warns that it should not be trusted for professional financial advice and says that the owner OpenAi has not released data about the number of people using the chatbot to choose investments.
“AI models can be brilliant,” says Moczulski, UK Managing Director at Etoro, who has 30 million users worldwide. “The risk comes when people treat generic models such as chatgpt or gemini as crystal balls.”
Moczulski said it is best to use AI generated platforms that have been specifically trained to analyze markets, because “general AI models can cite figures and dates, lean too hard on a predetermined story and too much trust in previous price action to try to predict the future”.
‘Uses only credible sources’
Finder asked Chatgpt in March 2023 to select a basket with shares of high -quality companies, with criteria such as debt levels, persistent growth and assets that generate an advantage over competitors.
The selection of 38 shares, including AI Posterchild Nvidia. And online retailer Amazon, besides consumers, such as Procter & Gamble and Walmart, almost 55% has risen so far, almost 19 percentage points more than the 10 most popular funds of the UK, including those managed by VANGUARD, FIDELITY, HSBC and Fundsmith.
Admittedly, American shares are around record highs and currently seem invigible to erratic American policy and fragmentary economic data. But using stock choices with chatgpt requires some financial knowledge and the adopters say that it is a high risk of being wrong before it is right.
Leung creates instructions such as “Suppose you are a short analyst, what is the short thesis for this stock?” Or “only use credible sources, such as SEC archives”.
“The more context you offer, the better the answers,” he said.
The risks are great. The exuberance for the AI tool, which has democratized access to investments, means that it is also impossible to say whether retail investors use risk management aids to reduce potential losses correctly when the markets run.
The Pan-European Stoxx 600 index has risen almost 10% this year, the S&P 500 index has added 13% after an increase of 23% last year.
“If people feel comfortable to invest AI and make money, they may not be able to handle a crisis or decline,” said Leung.
