An AI-powered portfolio put together by ChatGPT has outperformed the 10 most popular funds in the UK over the past eight weeks. According to finance website Finder.com, the experiment saw the ChatGPT stock portfolio climb 4.93%, while a group of real funds experienced a collective drop of 0.78%.
The portfolio included 38 stocks picked using a range of investing principles. Of these, three performed particularly well: Meta, Microsoft, and Intel Corporation all saw increases of around 30%, 20%, and 18%, respectively. Other names that held up well include Visa, Home Depot, Johnson & Johnson, Nvidia, and Netflix.
The findings of the study raise the question of how reliable ChatGPT is for investments. As pointed out by Finder chief executive Jon Ostler, the platform is still in the early stages and it may not be wise to rely solely on it for research. AI is now commonplace in large funds, but this may not be the same for all individuals.
He suggested, rather than relying on a platform like ChatGPT, people should invest time into researching properly from primary sources or qualified advisors. While 19% of surveyed UK adults admitted to already using or considering getting financial advice from ChatGPT, 33% were unsure what ChatGPT was. This figures shows that education is still necessary before investing.
ChatGPT is a San Francisco-based startup that is on a mission to use artificial intelligence to redefine traditional finance and operations. The platform works by using large language models to process financial data and look at the nuances in language to generate advanced analytics and insights. The company was founded and is helmed by CEO Ray Xie, who holds a degree in Electrical Engineering from the University of Colorado. His accomplishments include founding several other successful startups and becoming a well-known angel investor and advisor in the tech industry.
