Investors open to using ChatGPT to pick their investment portfolios

Survey reveals that a significant share of respondents believe AI can do a better job of choosing equities than they can.

JUL 14, 2023

By Steve Randall

For many of us, artificial intelligence is still at a relatively early stage, but some are prepared to rely on it for some of their most important investing decisions.

While ChatGPT is gaining ground in enhancing search and content creation, using the AI tool for picking and changing investment portfolios is a riskier endeavour. But 41% of retail investors, including 71% of those ages 18 to 44, are willing to do it.

A survey of 1,000 investors in the U.S. by trading and investing platform eToro found that 59% of those who are already using ChatGPT-style tools, or would be open to doing so, would allow AI to alter and execute trades for them — 69% among the 35 to 44 age group but lower for older investors.

Men, who are typically less risk averse, are more likely to trust AI for portfolio management and trading (52%) than women (31%).

“AI is a revolutionary technology, and it could help individual investors better tailor their money for their goals,” said Callie Cox, U.S. investment analyst at eToro. “AI has a promising future if it can improve our daily lives. For now, it seems like there are some real use cases when it comes to investing.”

Almost half of respondents said using AI would save them time on research, 43% believe it’s the future of investing, and 40% say it will make better decisions than them.

“Investors see AI as a resource for their own strategies, as well as a potential replacement for portfolio managers and financial advisors,” Cox added. “The latter scenario may not be too far off, either. We already have robo-portfolios, and AI may reach a point where it can be a decent guide for the average American’s financial situation.”

INVESTING IN AI STOCKS

While investing with AI may be a step too far for many, investing in it is not.

One in 10 poll participants plan on increasing their investments in AI stocks during the remainder of 2023 and another 23% say they plan to increase their investments in technology in the same time frame.