At least one in ten retail investors is now using ChatGPT to make stock selections, indicating a surge in the robo-advisory market, according to Reuters.

With artificial intelligence, anyone can now independently select stocks, monitor their performance, and receive investment analyses that were previously available only to large financial institutions.

According to Research and Markets, the robo-advisory market could grow from $61.75 billion in 2024 to $470.91 billion by 2029, representing a potential increase of 600%.

“I can no longer afford a Bloomberg terminal or other costly market data services,” said an investor named Leung. “Even a simple tool like ChatGPT can accomplish a lot and replicate much of the work I used to do.”

However, he warned that AI might overlook critical analyses due to a lack of access to paid sources.

A survey by eToro of 11,000 retail investors revealed that nearly half are willing to use AI tools like ChatGPT or Google's Gemini for investment selection or adjustment, with 13% already doing so.

In the UK, a study by Finder found that 40% of respondents sought advice regarding personal finances from chatbots and AI.

ChatGPT itself warns that it should not be relied upon as a professional financial advisor. OpenAI does not disclose how many individuals are using the chatbot for investment selection.

“AI models can be impressive,” stated Dan Mochulski, head of eToro in the UK. “The risk is that people view universal models like ChatGPT or Gemini as a magic bullet.”

Mochulski emphasizes the importance of utilizing specialized AI platforms trained to analyze markets, as general models may miscalculate figures and dates, overly relying on past trends while attempting to predict the future.