As ChatGPT approaches its third anniversary, at least one in ten retail investors worldwide is using chatbots to guide their stock choices — a trend driving explosive growth in the robo-advisory market. But even early adopters admit it remains a high-risk strategy.
Artificial intelligence has made stock selection, monitoring, and investment analysis accessible to retail investors at a fraction of the cost once reserved for institutional players.
The robo-advisory market — which covers fintech platforms, banks, and wealth managers offering automated financial advice — is projected to grow from $61.75 billion in 2024 to $470.91 billion by 2029, according to Research and Markets. That marks a nearly 600% surge in revenues.
From UBS to ChatGPT
Jeremy Leung, a former UBS analyst with two decades of experience, began using ChatGPT for stock ideas after leaving the Swiss bank last year.
"I no longer have the luxury of a Bloomberg terminal, which is very expensive," Leung said. "Even the simple ChatGPT tool can do a lot and replicate many workflows I used to do." Still, he cautioned that the chatbot cannot access critical paywalled financial data, leaving gaps in analysis.
Growing reliance on AI tools
Leung’s experience reflects a broader trend. A survey by broker eToro, which polled 11,000 retail investors globally, found that half would consider using AI tools such as ChatGPT or Google’s Gemini to pick or adjust investments. About 13% already do so.
In the UK, a Finder survey revealed that 40% of respondents have used chatbots or AI for personal finance decisions.
Experts sound caution
ChatGPT itself warns users against relying on its responses for professional financial advice. OpenAI has not disclosed how many investors use the tool for stock-picking.
“AI models can be brilliant,” said Dan Moczulski, UK managing director at eToro. “The risk comes when people treat generic models like ChatGPT or Gemini as crystal balls.”
Moczulski stressed that dedicated AI-powered investment platforms are better suited for financial markets, as general models may misquote figures, rely too heavily on narratives, or depend on past performance to predict the future. In March 2023, Finder asked ChatGPT to assemble a stock basket of high-quality companies based on criteria like debt levels, growth sustainability, and competitive advantage.
The selection of 38 stocks — including Nvidia, Amazon, Procter & Gamble, and Walmart — has gained nearly 55%, outperforming the UK’s ten most popular funds, such as those run by Vanguard and Fidelity, by about 19 percentage points.
High Risk, high reward
Despite the gains, analysts warn that using ChatGPT for stock-picking requires strong financial knowledge. “The more context you provide, the better the responses,” Leung explained, noting he often prompts the chatbot with requests like, “assume you’re a short analyst, what is the short thesis for this stock?”
Yet risks remain significant. With major indexes like the STOXX 600 up nearly 10% this year and the S&P 500 rising 13% after a 23% surge in 2024, the market backdrop has been unusually favorable.
“If people get comfortable investing using AI and they’re making money, they may not be able to manage in a crisis or downturn,” Leung warned.
