ChatGPT is an AI-based system that’s been developed to aid humans with a wide range of tasks. Many companies have been utilizing the capabilities of this technology for some time now for functions such as predicting customer habits and managing inventory. But does it have anything to offer when it comes to investing? To find out, I decided to put it to the test.
When asked about the best way to invest, ChatGPT recommended developing a unique plan by considering individual goals, risk appetite, and desired timeline. It also noted that ChatGPT isn’t a suitable alternative to professional investment advice. Further, it provided a nine-step guide for investing, which included instructions on choosing a portfolio, researching different financial instruments, and staying informed. This is a useful but basic overview and is insufficient to actually start investing.
To test further, I asked if I should invest in Amazon, and the AI was unsure as it wouldn’t provide investment advice. It did however give a good description of the company’s operations, and it also pointed out potential risks, such as adjustments in customer conduct, regulations, increased competition, and economic slowdowns. While this kind of information can be useful, it’s nonetheless quite general.
ChatGPT was more helpful when asked when to expect a potential recession. The AI gave a thorough set of factors to research to determine the trend of the economy, such as information from reliable economic institutions, central banks, and specialists.
The application of ChatGPT looks promising when looking for general facts or information. It’s better suited for answering more direct questions than a traditional search engine, and people can learn more from its answers compared to aimless web pages. Nevertheless, to gain worthwhile insight especially regarding events that occurred after 2021, it is of limited value.
Though ChatGPT can provide useful general advice and information, it’s not suitable for detailed investment strategies. It can be a helpful starting point, but it’s advisable to consult professionals when investing with real money.
Alphabet, Google’s parent company, has been investing heavily into AI, and this could potentially cause major advancements in the near future. Until then, ChatGPT is better suited for content creation or to provide general facts.
To recap, ChatGPT can be a helpful tool in kickstarting the process of investing or in understanding different companies. However, it’s not comprehensive enough to be relied upon to invest with real money. For that, it is advised to seek professional advice.
