Artificial Intelligence (AI) has become increasingly popular in assisting individuals with financial planning and investment decisions. Major banks, such as JP Morgan Chase, Goldman Sachs, and Morgan Stanley, have all started implementing AI-powered services to provide investment advice to their customers.
One such service is ChatGPT, a language model AI that can answer investment-related questions. In a recent analysis, Dailymail.com asked ChatGPT four basic investment questions and compared its responses with those of financial experts.
The first question posed to ChatGPT was how to start investing as a beginner. ChatGPT provided 11 steps, including setting financial goals, establishing an emergency fund, and determining asset allocation. However, financial experts noted that while this guidance was good, it lacked personalization.
The second question asked if one should invest in stock Nordisk. ChatGPT reiterated that it could not provide personalized advice and advised users to seek professional advice. Financial experts agreed that ChatGPT’s response was a good starting point.
The third question asked which asset classes could potentially outperform the market in the next 10 years. ChatGPT provided five categories: technology and innovation, emerging markets, healthcare and biotechnology, renewable energy and sustainable investments, and Environmental, Social, Governance (ESG). However, financial experts noted that ChatGPT’s response was too impersonal and vague.
The final question asked where one should invest $10,000 right now. ChatGPT advised users to consider investment goals, time horizons, and risk tolerance when allocating their funds. Financial experts noted that this question required more context to provide specific recommendations.
Overall, while ChatGPT provided good general guidance, financial experts noted that it lacked personalization and context, emphasizing the continued need for human advisors in the industry.
