A basket of 38 stocks selected by ChatGPT, an AI-powered chatbot, gained 4.9% over eight weeks, handily beating a group of top-rated UK investment funds which lost 0.8% on average.
The experiment conducted by financial services firm Finder underscored the disruptive potential of public access to AI for retail investing.
AI Stock Portfolio Beats Funds Over 2 Months
Between March 6th and April 28th, the ChatGPT portfolio outperformed 10 of the most popular actively managed funds on Interactive Investor, a leading UK trading platform.
HSBC, Fidelity and other stalwart fund managers were included in the comparator group, which lost ground despite a 3% rise for US benchmark S&P 500 over the period.
ChatGPT picked stocks based on sound criteria like low debt levels and consistent growth. The selections included big tech names like Microsoft, Netflix and Walmart.
Early Adoption Growing Among Retail Investors
While major funds have utilized AI analytics for years, ChatGPT represents the first public glimpse of advanced AI in finance for ordinary investors.
Per a Finder survey, 8% of UK adults have already utilized ChatGPT suggestions for investing, with 19% open to doing so. But 35% rule it out for guidance on financial decisions.
As retail adoption increases, the technology could significantly reshape individual investing behavior and markets.