At least one in ten retail investors is leveraging ChatGPT to select stocks, indicating a rise in the popularity of robo-advisory services, as reported by Reuters. Artificial intelligence is providing new opportunities for investors.
With AI, investors can independently choose stocks, track their trends, and receive financial advice previously accessible only to large firms.
According to Research and Markets, the robo-advisory market is projected to grow from $61.75 billion in 2024 to $470.91 billion by 2029, showcasing significant growth.
Investor Leung states, "I no longer have the luxury of a Bloomberg terminal or other expensive market data services, as even a basic tool like ChatGPT can handle much of my previous workload."
However, he warns that AI might overlook critical analyses due to limited access to paid sources.
A survey by eToro among 11,000 retail investors worldwide revealed that around half are willing to use AI tools for investment decisions, with 13% already doing so.
In the UK, a study by Finder indicates that 40% of respondents have turned to chatbots and AI for personal finance advice.
ChatGPT itself warns that it shouldn't be relied upon as a professional financial advisor. OpenAI does not disclose user statistics for investment purposes.
Dan Mochulski from eToro remarks, "AI models can be brilliant, yet there's a risk that people treat general 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 make errors in data and dates, overly relying on past trends and established narratives in predicting the future.
