Investors have been searching for artificial intelligence stocks to add to their portfolios given the increasing interest and attention to the sector. But, when it comes to using AI for investment advice, investors aren’t ready to hand over the reins.
What Happened: A surge in the price of artificial intelligence company stocks was ignited as AI use cases strengthened in late 2022 with the launch of ChatGPT. Technology giant Microsoft Corporation MSFT invested $10 billion in ChatGPT parent OpenAI in January 2023, increasing its existing stake in the company.
While use cases have risen, a new poll from Yahoo and Ipsos reveals that investors aren’t ready to let artificial intelligence make investment decisions for them.
The poll reveals that 46% of Americans don’t trust AI when it comes to providing financial advice. The top reasons for the lack of trust included limited information, not having a “human” element, AI technology being new and inaccurate information.
Additionally, the survey revealed that 62% of Americans said they were unlikely to use artificial intelligence to help manage their finances in the next five years.
The survey also asked responders if they would consider using AI for certain individual financial tasks including predicting the market, providing recommendations, managing retirement funds and managing cryptocurrency investments.
The individual questions saw limited support from respondents, with 57% of U.S. adults answering none.
Using AI to predict market changes was the answer with the most support, with 17% of U.S. adults saying they would trust AI.
Using AI for retirement decisions saw limited support, with questions about utilizing AI to provide insights and recommendations on retirement and using AI to manage a retirement fund receiving 11% and 10% yes votes respectively.
When it came to non-stock investments, AI was trusted even less. Only 7% of the respondents said they would trust AI to manage a cryptocurrency investment. Providing insights into other investments like real estate also got only 7% yes votes.
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Why It’s Important: Only 7% of U.S. adults polled said they would use AI to manage their stock portfolio. Eighty percent also said they would not pay for recommendations on financial products generated from artificial intelligence.
Investors and non-investors alike that were polled put their biggest trust in financial brokers (24%) and brokers (23%) and said they trust financial news websites (13%) far less.
The answers in the survey come as a new wave of retail traders has turned to social media and trading groups for advice on stock picks and investments.
To see how ChatGPT would do at picking stocks, Benzinga launched its own portfolio called BenzingaGPT using the AI bot as a tool to help make a portfolio of stocks.
The experiment launched in May has the BenzingaGPT portfolio outperforming 70% of peer funds tracked in the most recent week.
Read Next: Exclusive: Roundhill Investments Launches Generative AI ETF In Wak Of ChatGPT Growth
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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