As ChatGPT approaches its third anniversary, retail investors are increasingly turning to chatbots to guide their stock selections, fueling a surge in the robo-advisory industry. At least one in 10 individual investors now uses such tools to shape their portfolios, according to recent surveys, though experts caution that relying on general-purpose models carries significant risks.
The robo-advisory market—which encompasses fintech firms, banks, and wealth managers offering automated financial advice—is forecast to grow from $61.75 billion in revenues last year to $470.91 billion by 2029, according to data firm Research and Markets. The nearly 600% increase highlights the pace at which automated investing is becoming mainstream.
Former UBS analyst Jeremy Leung, who left the Swiss bank last year after nearly two decades, is among those embracing chatbot tools for investment analysis. “I no longer have the luxury of a Bloomberg terminal or expensive market-data services,” he said. “Even a simple tool like ChatGPT can replicate a lot of the workflows I used to do.” Still, he acknowledged limitations, noting that the system cannot access information hidden behind paywalls or provide the same depth of analysis as professional platforms.
Surveys suggest Leung is far from alone. A global poll by broker eToro of 11,000 retail investors found that half are open to using AI tools such as ChatGPT or Google’s Gemini to manage their portfolios, with 13% already doing so. In the UK, a separate study by comparison site Finder reported that 40% of respondents had used AI for personal finance advice.
Despite the enthusiasm, both industry figures and the technology providers themselves urge caution. ChatGPT has repeatedly emphasized that it should not be treated as a professional financial advisor, while OpenAI has not disclosed how many users rely on it for investing. Dan Moczulski, UK managing director at eToro, warned of pitfalls in treating general-purpose chatbots as financial oracles. “The risk comes when people treat models like ChatGPT or Gemini as crystal balls,” he said, adding that investors are better served by platforms specifically designed to analyze financial markets.
The technology has nonetheless shown striking results in some instances. Finder reported that a basket of 38 stocks selected with ChatGPT’s assistance in March 2023—including Nvidia, Amazon, Procter & Gamble, and Walmart—has gained nearly 55%, outperforming many top UK-managed funds by almost 19 percentage points.
Yet observers warn that strong returns in buoyant markets do not guarantee success during downturns. “If people get comfortable investing using AI and they’re making money, they may not be able to manage in a crisis,” Leung said.
For now, experts advise that while AI chatbots can democratize access to investment insights, they should be used alongside credible sources, careful prompts, and, where possible, professional advice.
