Investment Revolution: How ChatGPT is Transforming the Stock Market
At least one in ten retail investors is already using ChatGPT to select stocks, sparking a true boom in the robo-advisory sector, according to Reuters.
With artificial intelligence technology, anyone can independently analyze stocks, monitor their fluctuations, and receive investment advice that was previously available only to large financial institutions.
According to Research and Markets, the robo-advisory market, encompassing fintech, banks, and asset management companies, could expand from $61.75 billion in 2024 to $470.91 billion by 2029, indicating an approximately 600% growth.
Investor Leung stated, "I no longer have the luxury of a Bloomberg terminal or other expensive market data services. Even a simple tool like ChatGPT can accomplish much and replicate a significant portion of the work I used to do."
However, he cautioned that AI might miss critical analyses as it doesn't have access to paid sources.
A survey by eToro among 11,000 retail investors worldwide revealed that about half are willing to use AI tools, such as ChatGPT or Google’s Gemini, for selecting or adjusting investments, with 13% already doing so.
In the UK, a study by Finder found that 40% of respondents had consulted chatbots and AI for personal finance advice.
ChatGPT warns that it should not be relied upon as a professional financial advisor. OpenAI does not disclose how many people use the chatbot for investment selection.
Dan Mochulski, head of eToro in the UK, where the platform has 30 million users, noted, "AI models can be impressive, but the risk is that people view universal models like ChatGPT or Gemini as a magic bullet."
Mochulski emphasizes the importance of using specialized AI platforms trained to analyze markets, as general models can misinterpret numbers and dates, overly relying on past trends and established narratives while attempting to predict the future.
