Investors Trade with ChatGPT’s AI Stock Picks
Thousands of investors have signed up to follow the GPT Portfolio experiment from autopilot firm Autopilot via ChatGPT. Since then, the traders have invested a combined $14.7 million on the AI’s stock picks, which would average about $600 each if they all invested. They’re hopeful to achieve a small slice of the 500% return from one of the strategies in academic research. GPT Portfolio gets the AI to analyze 10,000 news articles and 100 company reports to select 20 stocks for the $50,000 portfolio, updated each week. The initial picks included Berkshire Hathaway, Amazon, D.R. Horton and Davita Health. After two weeks, the portfolio is up around 2%, which is pretty much the same as the stock market. Interestingly the bottom five picks lost more in percentage terms than the top five gained — Dollar Tree lost 17% after it missed earnings — so it might be more sensible in future to only invest in GPT-4’s best five or 10 ideas, but we’ll see how it works out.
ChatGPT Crypto Trader account is tweaking a similar strategy that gets GPT-4’s advice on when to go long on Ethereum. He says it shows a profit of 11,000% backtested to August 2017, but in the real-world experiment since January, the portfolio is up by a third, while the Ethereum price has gained 60%. It’s worth being careful using AI for trading, however, noted Crypto derivatives platform Bitget recently abandoned its experiment of using AI on the platform due to the potential for misinformation. A survey of its users found 80% of users had a negative experience with the AI, including false investment advice and other misinformation.
Demis Hassabis, the co-founder of DeepMind, thinks the rate of progress is set to continue, meaning we may be just a few years, maybe a decade away from artificial general intelligence (AGI). Many people believe these large language models like GPT-4 will lead to AGI but researchers from Microsoft argue that both can coexist. Specialized AIs like GPT-4 are good at saying what an answer should sound like, which is different from what an answer should be. According to AI writer Brian Chau, chances of AGI are less than 5% by 2043.
Furthermore, AI’s capability to automate jobs has raised concerns. Goldman Sachs suggests 300 million jobs while The World Economic Forum tips 83 million jobs will go in the next five years alone. Unlike previous waves of job losses, these are likely to be concentrated among white-collar workers. This could lead to a violent revolution, according to The Times of London columnist James Marriot, who points to academic research across 78 countries that shows that middle earners are more likely to participate in political unrest than the poor.
In summary, investing your money with AI stock picks could come with risks, especially with the potential for misinformation. However, the progress of technology and AI is undeniable, and it may lead to further employment loss. As AI continues to evolve, it is highly likely that specialized AIs will become more prominent in handing numerous industries from finance, marketing, to software development.
Editor’s Notes:
With the evolution of AI, it cannot be denied that this technology is continuously shaping the future. From smart homes to autonomous cars, AI is making life easier for people. One of the most significant changes that AI has brought is to the finance industry, where a lot of options are automated. GPT-4 is one of the latest AI models used in stock picking, and while the approach may carry some risks like potentially false investment advice, it’s worth understanding that this technology is still evolving. To learn more about AI and its impact on different industries, check out GPT News Room.
Main Keywords: AI, ChatGPT, Autopilot, stock picks, investors.
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