Millions of analysts and financial market experts worldwide provide their assessment of the development of the financial market, entire sectors or individual stocks based on data. But will investors be able to rely on ChatGPT as an additional data source in the future to get an idea of the financial markets?
• ChatGPT without looking at the stock market future
• AI with outdated data
• Companies with an AI focus as an alternative for investors
The chatbot ChatGPT is enjoying increasing popularity. One in four Germans is familiar with the text robot, as shown by a representative survey by the Bochum research institute CAIS (Center for Advanced Internet Studies) – in the USA, awareness of artificial intelligence is likely to be even greater. After the tech giant Microsoft announced a billion-dollar investment in OpenAI, the developer of ChatGPT, and launched a direct attack on search engine top dog Google, more and more users are testing the functions of the AI software. Investors in the stock market also have to ask themselves to what extent the use of ChatGPT could possibly influence and even make their own investment decisions easier. After all, the software can currently be used free of charge, while analysts and financial market experts employed by banks often have their expertise paid for, at least indirectly through trading fees that arise after an investment with their employer.
But even independent analysts are not necessarily beyond doubt: investors still have to compare price targets, interpret fundamental data and assess future opportunities and make an investment decision based on the results. An artificial intelligence like ChatGPT could solve this dilemma. How helpful is the software really for investors?
ChatGPT doesn’t want to make predictions
If you ask the software directly about the future of the stock market, worthwhile investments or the future price development of a share, you usually get the same answer: As an AI model, the software is not able to predict the future. In addition, the chatbot clearly points out to the questioner that the development of the stock markets is very complex and depends on many factors that could change at any time. No one, including experts, can predict the stock market with absolute certainty, is the tenor of various answers to different variants of the question about worthwhile stock investments in the future.
The software itself does not want to be seen as an investment advisor, which is in the nature of artificial intelligence: it learns from past data, which – especially on the stock market – cannot necessarily be transferred 1:1 to future developments.
General tips for investing
However, if you are looking for general tips on how to start an investing career, you will actually find what you are looking for at ChatGPT: The AI provides instructions for new stock market investors, but they also always contain information that investment decisions should be made carefully and checked regularly in order to minimize risk to achieve a maximum return.
You don’t get specific stock suggestions from ChatGPT, but you do get data from which an investment decision could be made. On request, the chatbot provides a list of the largest listed companies or industry representatives, for example from the tech sector. Anyone who first needs a rough definition of possible investment goals because a preliminary decision has already been made – for example for an industry or an investment country – can get help from AI. You can also query financial data from the past, such as sales or profit development of specific companies.
Data until September 2021
However, AI is not really helpful for current stock investments. In particular, the fact that ChatGPT can only access data through September 2021 makes it difficult to apply this information to the fast-moving and volatile current stock market.
In addition: ChatGPT refers to the usual sources – the company’s investor relations pages or relevant financial portals. So if you’re looking for historical data, you can get it in other ways and may find it clearer and more detailed than in the chatbot’s summaries.
AI can be worthwhile in other ways
However, there are still options for investors who want to use AI for their stock market investments. So it might be worth taking a look at Microsoft shares, as the company has big plans for ChatGPT and is clearly moving towards artificial intelligence.
The search engine giant Google has also positioned itself accordingly, while the Chinese internet company Baidu also wants to launch with an AI-controlled language model.
In addition, tech giants such as NVIDIA and Apple have also made significant upgrades in the AI sector, and companies with AI applications such as Siemens Healthineers, Teladoc and BioNTech are also companies far away from the Internet industry.
With a – carefully considered and well-thought-out – investment in companies that have chosen artificial intelligence as a business area, investors can participate in the future field of artificial intelligence, even if the AI ChatGPT itself is currently not a useful replacement for analysts and financial market experts or for their own research not replaced.
Editorial team finanzen.net
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