A recent competition showed that ChatGPT, the global AI chatbot, outperformed leading UK investment funds in a stock-picking challenge. The dummy portfolio created by the AI chatbot consisting of over 30 stocks registered a gain of 4.9%, which was significantly higher than the average loss of 0.8% seen by the top 10 UK funds.
The experiment, organized by Finder.com, analyzed the performance of their AI chatbot (ChatGPT) in comparison to the pre-existing portfolio funds in the market. The competition tested the performance of the stocks picked by ChatGPT over a period of 8 weeks, from March 6th to April 28th.
The stocks chosen by ChatGPT include large companies such as Netflix, Walmart, and Microsoft. As prompted by the analysts, the AI chatbot focused on selecting stocks with lower debt levels, in addition to looking at the companies’ growth track records.
This recent news has been widely discussed due to the potential implications of AI being used by retail investors to make better financial decisions. A study conducted by the University of Florida showed that ChatGPT trained models can potentially predict stock price movements to a greater degree of accuracy than traditional models used by traders.
In response to this new development, Finder’s CEO, Jon Ostler, warned the public against using AI for financial gain. He stated that relying solely on AI for stock prediction does not take into account the complexities of the financial market, and puts the user at risk of making bad financial decisions.
It is clear that ChatGPT has the potential to revolutionize the financial industry, but with caution from experts against relying solely on AI for financial advice, it is important to conduct further research, or seek the counsel of a qualified financial advisor, before making an investment decision.
About the company mentioned in this article
Finder.com is a global comparison platform, focused on analyzing and comparing different products and services such as credit cards, home loans, energy and broadband, plus a range of online tools such as calculators. Finder began in the UK in the early 2000s, and since then it has experienced global success, reaching Australia, the US, and Canada.
About the person mentioned in this article
Jon Ostler is the CEO of Finder.com. He is a business leader in the tech industry with a robust background in the tech, media, and advertising space. Prior to joining Finder, Jon was CMO at News UK, CEO at SilverRail Technologies and CMO at Virgin Media. He also held other executive roles at the past with the BBC, Sky and Yahoo!. He holds a bachelor’s degree in technology from Cambridge University.
