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The next big thing in DIY investing might already be in your browser — but should you really be asking ChatGPT what stocks to buy?
According to a global survey by the trading platform eToro, about 13% of individual investors are already using AI tools like ChatGPT or Google’s Gemini to choose stocks. And nearly half of all respondents said they would consider using AI to help manage their portfolios.
On the surface, it sounds like we’re entering a bold new era of investing. Advanced tools like ChatGPT used to be the stuff of research labs, but now they’re being used by everyday investors looking for an edge.
But before you ask a chatbot where to put your money, there are some serious things to consider.
From Wall Street to Web Chat
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Jeremy Leung spent nearly 20 years analyzing companies for UBS, one of the world’s top investment banks. Today, he’s managing his own multi-asset portfolio — and yes, he’s using ChatGPT to do it.
“I no longer have the luxury of a Bloomberg terminal,” Leung told Reuters. “Even the simple ChatGPT tool can do a lot and replicate a lot of the workflows that I used to do.”
Leung is part of a growing wave of investors who see AI not as a trading engine — like algorithmic trading — but as a research assistant. Instead of relying on expensive financial data platforms, he types in prompts and uses AI’s responses to help make decisions.
His strategy? Use precise prompts like:
- “Assume you’re a short analyst, what’s the short thesis for this stock?”
- “Use only credible sources, such as SEC filings.”
It’s not a crystal ball — more like a very fast and tireless junior analyst.
The Numbers Look Good — Maybe Too Good
Here’s where things get interesting: A stock portfolio created by ChatGPT last year reportedly grew nearly 55%, compared to a 36% average return for the UK’s 10 most popular funds.
That’s a huge difference.
But there’s a big “yeah, but” attached. The market has been hot. The S&P 500 rose 23% last year, and it’s already up another 13% this year. In times like these, almost any halfway decent stock might do well. So while ChatGPT’s stock picks look impressive, it might just be lucky timing.
Why Experts Are Urging Caution
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Tools like ChatGPT feel like they’re democratizing financial insight — giving average investors access to analysis that once required niche knowledge and thousands of dollars in software.
But experts see red flags.
Dan Moczulski, UK managing director of eToro, warns that generic AI models like ChatGPT and Gemini can misquote figures, get dates wrong, and repeat simplified narratives. They also often rely too heavily on past price data, which isn’t great when trying to predict the future.
And here’s the big one: They don’t have access to real-time market data or premium financial databases. That means their analysis might be outdated, incomplete, or just flat-out wrong.
Moczulski put it plainly. “The risk comes when people treat models like ChatGPT as crystal balls.”
A History of DIY Investing — and Where AI Fits In
This isn’t the first time technology shook up how regular people invest.
- Back in the ’80s, Charles Schwab brought electronic trading to dial-up users.
- In the ’90s, E-Trade slashed commission fees and moved investing online.
- After the 2008 crash, robo-advisors like Betterment and Wealthfront started managing portfolios using automated algorithms.
Now, with the release of ChatGPT in late 2022, we’re entering a new phase: AI-powered advisory.
This latest shift lets investors ask questions in real time and get detailed, often reasonable-sounding answers — something algorithm-driven robo-advisors can’t do.
The difference? Those older systems follow fixed rules. AI chatbots don’t. That flexibility can be powerful — or dangerously misleading.
What Could Go Wrong?
Leung mentioned one of the biggest concerns: If investors get used to making money with AI-guided picks, they might not know what to do when a downturn hits.
“If people get comfortable investing using AI and they’re making money, they may not be able to manage in a crisis,” he said.
That’s a scary thought.
Investing isn’t just about riding the highs — it’s about managing the lows. And if AI makes you feel invincible, you might skip the boring stuff like risk management or backup plans.
The Bottom Line
Using tools like ChatGPT for stock research is tempting. It feels smart, modern, and efficient — and for some, like Jeremy Leung, it’s already replacing expensive services.
But the key word here is “tool.” AI is smart, but it’s not infallible. It’s one input in a bigger decision-making process. It can’t see the future, and it doesn’t know your personal risk tolerance.
If you’re planning to use AI for investing, keep your eyes open:
- Use specific prompts to guide better responses.
- Don’t treat it as financial gospel.
- Know what kind of data it can and can’t access.
- Have a plan for how to handle market downturns.
AI might be changing the world of investing — but some things haven’t changed. Good research, critical thinking, and understanding your own goals still matter.
And maybe, more than ever, a little skepticism goes a long way.
Keywords: AI in investing, ChatGPT stock picks, AI financial analysis, eToro survey, AI tools investing
