In the UK, an experiment conducted by financial comparison site, finder.com, have indicated that stocks selected by a chatbot powered by artificial intelligence (AI), ChatGPT, have outperformed some of the most popular investment funds present in the market. Between March 6th and April 28th, the dummy portfolio selected by the chatbot rose by 4.9%, compared to the 10 leading investment funds which faced an average loss of 0.8%. On the other hand, the US S&P 500 index and Europe’s Stoxx Europe 600 index rose by 3% and 0.5 % respectively in the same duration of 8 weeks.
In contrast to investing funds, typically collected from different investors and supervised by a fund manager, ChatGPT can be accessed by general public and give recommendations based on some commonly used parameters such as selecting companies with low level of debt and growth track. A survey of 2000 UK adults conducted by Finder revealed that 8% of them already tried to use chatbot for financial advice, with 19% saying that they are considering doing so.
Finder’s CEO, Jon Ostler, said in a statement earlier this week that it won’t ” be long until large numbers of consumers try to use (ChatGPT) for financial gain.” However, a huge 35% of the surveyed adults said that they would not consider using chatbot for anything related to money-related decisions.
ChatGPT Inc. is a chatbot powered by Artificial Intelligence (AI). Founded in 2018 and based in California, USA, the company has been aiming to help the general public make decisions regarding investments through the aid of AI-driven technologies. The University of Florida studied the effectiveness of ChatGPT in predicting stock price movements of companies accurately and concluded that it was more effective than basic analysis models.
