A basket of stocks selected by ChatGPT, a chatbot powered by artificial intelligence (AI), has far outperformed some of the most popular investment funds in the United Kingdom.

João Correia

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ChatGPT, a chatbot powered by AI, has outperformed popular investment funds in the UK. A dummy portfolio of 38 stocks selected by ChatGPT gained 4.9% compared to an average loss of 0.8% for 10 leading investment funds. The use of AI in investment decisions has traditionally been limited to major funds, but ChatGPT has put this technology in the hands of retail investors. While there is still skepticism about trusting AI with finances, the democratization of AI has the potential to disrupt and revolutionize the financial industry.

ChatGPT can pick stocks better than your fund manager

I don’t believe in trading stocks for a sort period of time.

An 8 week window is entirely too short of a timeframe to draw any real world conclusions. Will one of these models eventually beat the market over a longterm horizon? Sure, but this is not that. Just look at the WSJ trials testing out Malkiel’s theory that a monkey throwing darts at a dartboard would beat pros. In 100 hundred experiments the pros lost almost 45% of the time.

This is a bit like saying my 14 year old is a better driver than me because he drove on a clear stretch of country road for 2 minutes.