Artificial intelligence (AI) tool ChatGPT, developed by Open AI, is not yet a reliable tool for investors due to its spotty market and investing knowledge, according to research firm DataTrek. In a test of the chatbot's capabilities, the firm asked it seven questions related to markets and investing, and the bot refused to answer four questions and gave vague or incorrect answers to the remaining three. For example, when asked about the performance of the S&P 500 last year, ChatGPT said it had a net return of 26.9%, when in fact it fell 20%. ChatGPT also refused to give its opinion on specific stocks, claiming it could not predict the future with certainty. The chatbot could potentially serve as an assistant in portfolio management, according to one academic paper, but investment managers are not worried about the bot taking over their jobs, as it only seems to be capable of surface-level thinking for now. However, observers are quick to point to the rapid development of AI, with Open AI releasing the newest version of the bot, GPT-4, in March, which the company claims is capable of "advanced reasoning" and "creativity". While AI technology is already making headway in highly complex fields like medicine, passing a licensing exam and easily diagnosing a rare illness, ChatGPT still has a long way to go before proving useful in the financial services industry or as a tool for individual investors.
ChatGPT not yet useful for investors