Introduction
AI stock picking is revolutionizing how everyday investors choose their investments, with the robo-advisory market exploding by 600% as retail traders abandon traditional methods. This technological shift represents the biggest change in investment decision-making since online brokers first appeared, democratizing access to sophisticated analysis tools once reserved for Wall Street professionals.
Key Points
- 13% of retail investors already use ChatGPT for stock selection, with 50% considering AI tools for investment decisions
- Robo-advisory market projected to reach $470.91 billion by 2029, up from $61.75 billion in 2024
- ChatGPT portfolio gained 55% since March 2023, outperforming UK’s top 10 funds by 19 percentage points
- eToro survey of 11,000 global investors reveals widespread adoption of AI investment tools
- Former Wall Street analysts now rely on AI chatbots after losing access to expensive Bloomberg terminals
ChatGPT Investment Advice Transforms Retail Trading
The surge in ChatGPT investment advice usage marks a fundamental shift in how ordinary people approach stock markets. Jeremy Leung, a former UBS analyst with nearly two decades of experience, exemplifies this trend after losing his position earlier this year. Without access to costly Bloomberg terminals and premium data services, Leung turned to ChatGPT for managing his multi-asset portfolio.
“Even the simple ChatGPT tool can do a lot and replicate many workflows I used to do,” Leung explains, though he cautions that AI tools might miss crucial analyses since they cannot access paywalled financial data.
Retail Investors AI Tools Show Remarkable Results
Retail investors AI tools are delivering impressive performance that challenges traditional fund management. When Finder asked ChatGPT in March 2023 to select stocks from high-quality businesses based on specific criteria like debt levels and sustained growth, the resulting 38-stock portfolio has surged nearly 55%.
The AI-selected portfolio includes tech giants like Nvidia and Amazon alongside consumer staples such as Procter & Gamble and Walmart. This diverse selection has outperformed the average of the UK’s 10 most popular funds by almost 19 percentage points, demonstrating the potential of algorithmic stock selection.
Robo-Advisory Market Experiences Unprecedented Growth
The robo-advisory market is experiencing explosive expansion as more investors embrace automated investment solutions. Industry analysts project revenues will reach $470.91 billion by 2029, representing a staggering 600% increase from the $61.75 billion recorded in 2024.
This growth parallels broader technological advancement trends seen across multiple sectors, similar to how satellite internet services are transforming connectivity globally with innovative technology rollouts expected to reshape digital infrastructure.
AI Stock Research Methodology Evolves
AI stock research techniques are becoming increasingly sophisticated as users develop better prompting strategies. Leung creates specific instructions like “assume you’re a short analyst, what is the short thesis for this stock?” and directs the AI to “use only credible sources, such as SEC filings.”
This approach reflects growing sophistication among AI-assisted investors who understand both the technology’s capabilities and limitations. The key lies in crafting precise prompts that generate actionable insights while acknowledging potential blind spots in AI analysis.
Artificial Intelligence Investing Faces Industry Warnings
Despite impressive results, artificial intelligence investing carries significant risks that financial professionals are highlighting. Dan Moczulski, UK managing director at eToro with 30 million users worldwide, warns against treating “generic models like ChatGPT or Gemini as crystal balls.”
Industry experts advocate for using AI platforms specifically trained for market analysis rather than general-purpose chatbots. The concern stems from AI models potentially misquoting figures, relying too heavily on established narratives, and over-depending on historical price action for future predictions.
AI Portfolio Management Strategies Emerge
AI portfolio management approaches are diversifying as investors experiment with different methodologies. The most successful strategies combine AI insights with traditional risk management principles, avoiding over-reliance on algorithmic recommendations alone.
Professional advisors recommend using AI tools as starting points for research rather than final decision-makers. This balanced approach helps investors leverage AI capabilities while maintaining critical thinking about market dynamics and company fundamentals.
Conclusion
AI stock picking represents a revolutionary shift in investment decision-making that’s democratizing access to sophisticated market analysis. While the 600% growth in robo-advisory services and ChatGPT’s impressive portfolio performance demonstrate AI’s potential, investors must balance algorithmic insights with traditional research methods. The key to successful AI-assisted investing lies in understanding both the technology’s capabilities and limitations while maintaining disciplined risk management practices.
FAQs
Q: How accurate is ChatGPT for stock picking?
A: ChatGPT’s stock selections have shown strong performance, with one portfolio gaining 55% since March 2023, but results vary and shouldn’t be relied upon exclusively for investment decisions.
Q: What percentage of investors use AI for stock selection?
A: According to eToro’s survey of 11,000 retail investors, 13% already use ChatGPT for stock picking, while 50% would consider using AI tools for investment decisions.
Q: Are AI stock picking tools safe for beginners?
A: AI tools can provide valuable insights but should complement, not replace, traditional research and risk management. Beginners should start small and understand the technology’s limitations.
Q: What’s the biggest risk of using AI for investing?
A: The main risks include over-reliance on AI predictions, lack of access to real-time market data, and potential for AI models to misinterpret complex market conditions or company-specific factors.
November 20, 2025