A notable trend indicates that at least one in ten retail investors are utilizing artificial intelligence (AI) chatbots, such as ChatGPT, for stock selection, contributing to growth in the robo-advisory market. This development follows ChatGPT’s launch in November 2022, which is widely credited with igniting the broader AI boom.
According to a survey conducted by broker eToro involving 11,000 retail investors worldwide, 13% currently employ AI tools for investment decisions, while approximately half express a willingness to do so. Some individuals, like former UBS analyst Jeremy Leung, have adopted these AI tools to replicate complex market analysis workflows, particularly when access to expensive financial data services is no longer available.
Despite the perceived benefits, both users and analysts caution that using AI for stock picking represents a high-risk strategy. Adopters emphasize that effective use requires existing financial knowledge, as these tools may not access all crucial data, such as information behind paywalls, and are not yet considered a full replacement for traditional financial advisors.
Source: indianexpress.com