As ChatGPT approaches its third year, at least 10% of individual investors are using AI-based chatbots for stock selection. This trend is driving significant growth in the robo-advisory market.
The robo-advisory market encompasses automated investment advice services offered by fintech companies, banks, and asset managers.
According to research data, market revenues will grow by approximately 600% by 2029, increasing from $61.7 billion to $470.9 billion. Experts agree that artificial intelligence is democratizing investment analysis. However, general models like ChatGPT have limitations: they cannot access paid databases, sometimes give inaccurate figures, or try to predict the future by relying too much on past prices.Speaking on behalf of eToro’s 30 million users, UK Director Dan Moczulski says, “AI models can be great, but they’re not crystal balls. Using specially trained platforms to analyze markets is the safest way.”
Despite this, the 38-stock portfolio that Finder selected using ChatGPT gained 55% in value, outperforming the average of popular funds. This portfolio included Nvidia, Amazon, Procter & Giant companies like Gamble and Walmart are included. The biggest risk for investors is relying too much on artificial intelligence during times of crisis. Although individual investors may make profits, they are highly likely to face significant losses without risk management.
