In an extraordinary turn of events, ChatGPT, the conversational marvel and expansive language model (LLM) created by OpenAI, has swiftly assumed a new role in American society as a trusted stock market guru.
The Motley Fool, an investment advice website, conducted a survey of 2,000 Americans, revealing that a staggering 47% of US adults now rely on ChatGPT for invaluable insights into stock market picks. Surprisingly, 45% of respondents expressed comfort in exclusively relying on this AI model for their stock selections.
It is worth noting that ChatGPT-3.5 draws its knowledge from internet content up until 2021. To access more up-to-date information and stay abreast of today’s market trends, users would need to subscribe to ChatGPT Plus, powered by the cutting-edge GPT-4.
However, even GPT-4 has its limitations, as it lacks the capability to integrate real-time dynamic data, such as stock prices and interest rate fluctuations, into its generative language algorithms. Consequently, if you harbor aspirations of delving into day trading, this approach may not yield optimal results.
Who, then, is turning to AI for investment advice? Interestingly, ChatGPT finds particular favor among younger Americans, especially the digitally native Millennials and Gen Zers, who enthusiastically utilize the AI LLM to uncover promising stock picks. The Motley Fool survey reveals that 50% of Millennials and 53% of Gen Zers have already embraced this technological marvel. In stark contrast, only 25% of Baby Boomers, a generation well-versed in the workings of fax machines and floppy disks, feel comfortable entrusting their investments to AI.
Unsurprisingly, income levels prove to be reliable indicators of ChatGPT adoption for stock research. A remarkable 77% of high-income Americans affirm using ChatGPT for investment recommendations, compared to 43% of middle-income Americans and a mere 23% of low-income Americans.
Gender differences also emerge as noteworthy factors in AI utilization. Recent trends indicate that women, who have exhibited superior performance as investors, tend to adopt a more cautious approach to financial matters. Analyst Asit Sharma from The Motley Fool suggests that women exhibit greater composure and less impulsiveness during market volatility. Hence, it comes as no surprise that only 41% of women turn to ChatGPT, while 55% of men seek its guidance.
Overall, the survey reveals that a remarkable 69% of American adults express willingness to consider ChatGPT for investment advice in the future. This profound shift towards AI has the potential to disrupt the economics of money management, democratizing a tool that even hedge fund traders cannot resist.
Market Makers, a London-based firm, conducted a survey among the top 50 hedge fund managers, discovering that a staggering 90% of them plan to integrate AI into their portfolio management strategies throughout 2023. Such a significant adoption rate underscores the seismic impact of ChatGPT and its ability to captivate even the most seasoned financial professionals.