Artificial intelligence is becoming an increasingly popular tool in the investment advice industry, with prestigious banking groups like Morgan Stanley leading the way. The precise operating principle of artificial intelligence robots providing investment advice is considered a closely guarded business secret, underscoring the competitive nature of the industry.
In a study conducted by German researchers Fieberg, Hornuf, and Streich, publicly available ChatGPT was used to determine what a good investment portfolio would look like for a US investor. This comparison revealed that the US robo-investment advisor was developed solely for investment advice, while ChatGPT serves as a “professional of all fields”, highlighting the different capabilities of each platform.
The use of artificial intelligence in investment advice is gaining traction within the banking industry, with businesses looking to take advantage of its precision and accuracy in making investment decisions. However, it remains to be seen how this technology will evolve over time and what impact it will have on traditional financial services.