ChatGPT: The Future of Investment Advice?

Investors are increasingly turning to artificial intelligence to seek investment advice. However, a recent test found that the ChatGPT platform’s answers were not very sophisticated, and a reasonably competent high-school student could have outperformed the platform. When asked about cryptocurrency, ChatGPT provided a list of risks and considerations, rather than pointing out that relatively few investors have profited. Similarly, on the subject of index funds, ChatGPT was reluctant to take a position, stating that there were proponents on both sides of the argument, despite academic research overwhelming indicating that index funds achieve higher returns. When asked how to invest $20,000, ChatGPT provided general advice about starting an emergency fund, paying off high-interest debts, and investing in diversified low-cost index funds or exchange-traded funds, but did not offer any suggestions on selecting a financial adviser. On the topic of best stocks to buy, ChatGPT suggested analyzing market trends, evaluating company fundamentals, considering financial goals, and staying informed and cautioned that stock returns are not guaranteed. On the subject of load mutual funds, ChatGPT listed several advantages, such as hand-holding by a salesperson while obfuscating the fact that sales charges inevitably reduce investment returns. In conclusion, while artificial intelligence may offer a quick response, investment professionals do not need to worry about it becoming obsolete any time soon.