ChatGPT OpenAI in all its versions, especially the latest, has entered or is currently entering almost every aspect of human existence, ranging from education to finance at the moment.
Artificial intelligence may not be able to overtake human intelligence, but it certainly provides good competition for trophies.
In its most recent achievement, the basket of stocks selected by ChatGPT, has far outperformed some of the UK’s most popular investment funds.
Financial comparison site finder.com revealed that between March 6 and April 28, a dummy portfolio of 38 stocks rose 4.9% while the top 10 investment funds recorded losses of mostly 0.8%.
finder.com also revealed that during the same eight-week period, the S&P 500 index, which searches the 500 most valuable companies in the United States, rose 3%. The European equivalent, the Stoxx Europe 600 index, was up 0.5% in the meantime.
Can ChatGPT Predict Stock Price Movements?
A typical investment fund pools money from multiple investors, and is overseen by a fund manager who makes decisions on how to invest the money.
Finder analysts take over the 10 most well-known UK funds on trading platform Interactive Investor as a yardstick for assessing the performance of ChatGPT-generated funds. Funds managed by HSBC (HSBC) and Fidelity are among those shortlisted.
Analysts expect ChatGPT to select stocks based on several commonly used criteria, including selecting companies with low debt levels and a track record of growth. Microsoft (MSFT), Netflix (NFLX) and Walmart (WMT) are among the companies selected.
While big funds have used AI for years to aid their investment decisions, ChatGPT has put the technology in the hands of the general public, with the potential to guide retail investor decisions.
A survey of 2,000 UK adults conducted by Finder the following week found that 8% had used ChatGPT for financial advice, while 19% said they would consider doing so.
But a much larger 35% said they could not consider using a chatbot to help them make decisions about their money.
Last month, researchers at the University of Florida found that ChatGPT was able to predict the price movements of certain companies’ stock prices more accurately than some of the more basic assumption models.
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