At least one in ten retail investors is already turning to ChatGPT to select stocks, fueling a boom in the automated financial advice market, according to Reuters.

Thanks to artificial intelligence, investors can independently analyze stocks, track their performance, and receive financial insights that were once only available to large financial institutions.

According to Research and Markets, the robo-advisory market, encompassing all firms providing automated financial solutions, is expected to grow from $61.75 billion in 2024 to $470.91 billion by 2029, marking an approximate 600% increase.

“I no longer have the luxury of using a Bloomberg terminal or other expensive financial 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 miss critical analysis due to lack of access to paid information sources.

A survey by eToro among 11,000 retail investors worldwide revealed that about half are willing to use AI tools like ChatGPT or Google's Gemini for selecting or adjusting investments, with 13% already doing so.

In the UK, a study by Finder found that 40% of respondents consulted chatbots and AI for personal finance advice.

ChatGPT itself cautions that it should not be relied upon as a professional financial advisor. OpenAI does not disclose how many people use the chatbot for investment choices.

“AI models can be brilliant,” says Dan Mochulski, head of eToro in the UK, where the platform has 30 million users. “The risk is that people perceive general models like ChatGPT or Gemini as a magic bullet.”

Mochulski emphasizes the importance of using specialized AI platforms trained to analyze markets, as general models can misinterpret figures and dates, relying too heavily on past trends and established narratives in their predictions.