If you ask ChatGPT a question, you almost always get an answer. An equity fund put together in this way has now left the competition far behind for more than two months.
A collection of stocks generated by the AI chatbot ChatGPT has appreciated significantly more in value than the 10 most popular funds in the UK in eight weeks. The Financial Times reports, citing the financial comparison portal Finder.com, which carried out the experiment. This prompted ChatGPT to put together a fund of over 30 stocks. The chatbot was given a number of investment principles from the most important fund providers. It won’t be long before many consumers ask the technology for financial help, says Finder.com, while also advising against it.
Better but how much?
The report does not reveal exactly how the fund was composed, nor does the report reveal the best value that was achieved by the established funds. It only says that the ChatGPT portfolio has increased in value by 4.9 percent, and the ten funds compared have increased by 0.8 percent on average. So ChatGPT does not have to have reached the maximum value. Among the established funds were some from Vanguard, Fidelity, and HSBC, they were the ten most popular on the Interactive Investor platform.
The big question now is how bad is the idea of consulting ChatGPT for investment advice, says Finder.com CEO John Ostler. Although the fund providers have long been relying on AI, it doesn’t sound like a good idea for the public to entrust themselves to AI technology, in which the shortcomings are repeatedly pointed out. On the other hand, many would otherwise listen to TikTok stars or influencers. Of course, it would be ideal not to use either source, but AI technology is based on millions of pieces of data from the Internet.
According to a survey by Finder.com, 19 percent of all adults in the UK would consider seeking “financial advice” from an AI. Eight percent had already done so. Overall, technology could revolutionize the financial industry, but it’s still too early to trust it when it comes to your own money, says Ostler, adding: “Anyway, fund managers could start looking nervously over their shoulders.” Just a few days ago, two US researchers determined that ChatGPT performs better at decoding the nuances in announcements from the US central bank (“Fedspeak”) than previously used methods.