Robo-advisory market surges as chatbots reshape investing

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Chat GPT is approaching its third anniversary, and within three years, at least 10 retail investors have come to rely on chat boots as they are boosting the Robo Advisory market, even fans say it is a high -risk strategy that is not yet replaced by traditional advisers.

With artificial intelligence, anyone can choose the stock, monitor them and get an investment analysis, once only available to major banks or institutional investors.

Robo Advisory Market-which includes all companies providing automatic, algorithm-powered financial advice, such as fantasy, banks and wealth organizers, which are being predicted to increase from $ 61.75 billion to $ 470.91 billion last year last year.

No access to information behind any paywall

Jeremy Living, who just did the Two in almost two decades to analyze companies for UBS, has been using Chat GPT to chase his multi -East Portfolio stock since leaving the Swiss bank at the end of last year.

“I no longer have the luxury of Bloomberg (terminal), or that kind of market data services that are very expensive, very expensive,” said Living.

“Even the simplest tool of Chat GPT can do a lot and create a lot of workflows that I used to do,” he said, warning that such a device could be deprived of some important analysis because it could not access the data behind a payland.

Living is not alone. The industry is growing rapidly and faster.

Almost HALF half retail investors say they will use AI tools such as Chat GPT, whose launch in November 2022 incited AI -Boom in the markets, or Google’s Gemini could be selected or replaced with investment in his portfolio, and 13 % of them were already used by 11,000 in the world.

In the UK, 40 % of the respondents of a comparative company Finder said they had used chat boats and AI for personal finance advice.

Chat GPT itself has warned that it should not be relynamed for professional financial advice, and he says its owner Openi has not released data about the number of people using his chatboat to choose an investment.

“AI’s models can be excellent,” said Dan Mokzolsky, Managing Director of the UK, Etoro, who has 30 million users worldwide. “This danger comes when people treat ordinary models like chatigat or gym as crystal balls.”

McZolsky said it is better to use specially trained AI-influx platform to analyze markets because “ordinary AI models can misuse data and dates, make it very hard on the pre-established story, and to try to predict the future more than the pricing of past pricing.”

‘Only uses reliable sources’

Finder told Chat GPT in March 2023 to choose a basket of stock from high quality businesses, which have standards such as debt levels, permanent growth and assets that benefit from competitors.

The selection of 38 stocks, including AI posterchild Nvidia. And with consumers like online retailers Amazon, Proctor & Gamble and Walmart, it has increased by about 55 % so far, which is about 19 % points higher than the average of the 10 most famous funds in the UK, including Wangord, Federation, HSBC and funds.

In the meantime, the US stock records are around the height and now, the US policies and the complex economic data are unacceptable. But using Chat GPT requires some financial information to pick up stock, and its adoptions say it is more at risk of being wrong before it is correct.

Living “Suppose you are a short analyst, what is a short dissertation for this stock?” Or “use only reliable sources, such as SEC filing”.

“The more context you provide, the better the reaction,” he said.

The risks are large. The enthusiasm for the AI ​​tool, which has made access to investment democratic, also means impossible to say whether retail investors are using risk management tools to properly reduce the potential losses when they turn the markets.

The Pan European Stokes 600 Index has increased by about 10 % this year, the S&P 500 index increased by 13 % after a 23 % increase last year.

“If people feel relief in investing using AI and they are making money, they cannot manage any crisis or misery,” said Living.