Would you trust AI to help you invest your money and manage your portfolios?

So, you’ve got some money to invest, and you’re mulling over your options, right? Wall Street, Main Street, or perhaps…Silicon Street? That’s right, folks, the computer wizards have been busy, and they’ve conjured up a whopper: Artificial Intelligence (AI) investment platforms. It feels like we’ve been hurled into a sci-fi saga where the heroes and heroines don’t carry lightsabers but wield algorithms and datasets.

Lights are flashing, numbers are soaring, and people are yelling. That’s the Wall Street we know, right? But now, there’s a new player on the block, and it’s not some Harvard graduate or a Wall Street wolf. It’s a silicon-brained wizard going by the name of ChatGPT. Wall Street is getting a tech upgrade, stirring up the finance pot!

Nearly 50% of adults rely on AI to obtain stock market guidance

According to a recent survey conducted by The Motley Fool, a popular investment advice website, it was found that 47% of American adults rely on ChatGPT to obtain guidance on stock market selections. Furthermore, the survey indicated that 45% of participants expressed their willingness to rely solely on the AI model for stock picking, indicating a potential trend for the future.

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The AI software that seems to constantly be on the news – ChatGPT, the high-tech marvel crafted by OpenAI is proving to be much more resourceful than your average text-generating chatbot. The fascinating bot has dived headfirst into the shark tank of finance, making investment strategies and financial decisions that have seasoned money managers scratching their heads and saying, “How’d it do that?”

How ChatGPT performed in a mock-up portfolio? 

In an experiment by the financial comparison platform finder.com, a mock-up portfolio consisting of 38 stocks saw a 4.9% increase between March 6 and April 28. During this same period, an average decline of 0.8% was noted across ten premier investment funds. During the identical eight-week stretch, the S&P 500 index, a barometer for the 500 most valuable U.S. companies, ascended by 3%. Its European counterpart, the Stoxx Europe 600 index, marked a modest increase of 0.5%.

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Downsides to using AI for investing

Before we jump the gun, ChatGPT, for all its shining credentials, isn’t without its stumbles. Investing isn’t as simple as a binary game. It’s a performance, a mix of emotions, global developments, and the unpredictability of the human psyche that can flip market conditions like a pancake. There’s a skeptical camp that asserts that no matter how savvy an AI like ChatGPT is, there are nuances it might not catch. The human instinct, the gut reaction to a sudden news flash – can a digital entity truly master this?

Upsides to using AI for investing

Yet, there’s a certain appeal to AI taking the finance reins. Consider ChatGPT, the epitome of relentless productivity. It doesn’t need to catch forty winks, doesn’t need a coffee break, and certainly doesn’t buckle under pressure. It’s always on, processing data and making decisions with a speed that would make a Wall Street trader’s head spin.

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Wall Street vs. Silicon Street

So, where does this leave us? Is Wall Street on the verge of being rebranded as “Silicon Street,” with AI stars like ChatGPT hogging the limelight? Or will the seasoned money managers, those financial gurus with years of wisdom, keep their crowns?

It’s a showdown that’s captured the world’s attention. The seasoned finance mavens pitted against the silicon savant, ChatGPT. What a whirlwind of a story we have unfolding here. It’s like a thrilling chess match between the seasoned experts of Wall Street and the new digital whizz kid on the block.

Think about it. We’re witnessing an incredible collision of worlds. On one side, we’ve got tradition, decades of experience, and human intuition. On the other side, we’ve got this cutting-edge tech and a tireless data-devouring machine.

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The big question is – will this be a fleeting meet-up, or are we seeing the start of a new norm? Will Wall Street and Silicon Street become indistinguishable neighbors in the future? It’s anyone’s guess.

Kurt’s key takeaways

The future isn’t just knocking on the door – it’s kicked it wide open and made itself comfortable on the investment sofa. In the world of investing, AI-powered platforms like ChatGPT are gaining popularity, with a significant number of adults relying on them for stock market guidance, presenting a potential trend for the future. However, while AI offers relentless productivity and speed, it may struggle to capture certain nuances and human instincts that play a role in investing, making it a showdown between traditional finance experts and the new digital whizz kids.

 

Where would you feel more comfortable placing your bet if you were sitting on a nest egg? Would you go old-school, trusting the well-worn seats of Wall Street? Or would you take a leap into the future, trusting your precious bucks to the tireless, emotionless, and relentless ChatGPT? Let us know by commenting below.

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