"AI fails to provide tailored advice for novice investors"
"Data from years ago... could lead to serious problems"
Can we really entrust our assets to artificial intelligence (AI) chatbots such as ChatGPT and Gemini? A test run by UK broadcaster Sky, in which money was invested strictly according to AI advice, is drawing attention. Human financial planners evaluated the investment strategies suggested by the AI chatbots.
On the 25th (local time), Sky said it had launched an experiment in which it placed three accounts of 16,000 pounds each (about 31 million won) under the control of Copilot, ChatGPT, and Gemini, and then observed what investment strategies they would pursue. These three AI chatbots are currently the most popular AI services in the UK.
Microsoft Copilot first invested most of the funds in stock market ETFs in major developed countries, then allocated the remaining amount across a range of assets including U.S. big tech stocks such as Nvidia, Microsoft, and Google, as well as UK government bonds, gold, and cryptocurrencies.
OpenAI's ChatGPT spread the account across a much wider variety of asset classes. It looked at stocks, funds, real estate, and even alternative investments. For stocks, it considered not only big tech names but also pharmaceutical companies and energy firms. However, ChatGPT warned that "individual investors need to think about their own risk appetite, total investment horizon, and cash flow."
Finally, Gemini recommended three overall strategies depending on the investor's profile: handing asset management over to a real fund manager, investing in one or two ETFs, and taking on a certain level of risk. For individual securities, it suggested technology companies in South Korea and Taiwan, as well as European banks and industrial stocks.
"If novices lacking knowledge use AI, there is a risk of bad choices"
An asset management specialist who reviewed the three chatbots' investment strategies told Sky, "Copilot lacks diversification," adding, "If an investor built a portfolio like this, they would be taking on considerable risk." Regarding ChatGPT, the expert pointed out that it "recommended investing in real estate when market conditions are difficult." On Gemini, the expert said, "It mentions a range of products, but does not offer specific options that a real investor can actually use," and warned, "A novice investor who lacks knowledge or information could end up making the wrong choices."
Another financial expert said, "These AI chatbots do not provide tailored advice to novice investors," and added, "The most critical issue is that they use outdated data. If you provide pension or financial advice based on information from years ago, it can cause serious problems for clients."
AI investing is popular... financial advice gap is widening
According to Sky, around 40% of adults in the UK now ask AI chatbots questions about their personal finances, including investing, pensions, and savings. In particular, the survey found that 65% of Generation Z (ages 18 to 28) and 61% of Millennials (ages 29 to 44) are entrusting their personal financial management to AI.
Sky noted that this issue may be rooted in wealth polarization. According to asset manager Schroders, over the past six years the share of financial-advice clients with investable assets of less than 50,000 pounds (about 96.5 million won) has dropped from 52% to 25%, while the share of clients with more than 200,000 pounds (about 380 million won) has nearly tripled from 11% to 30%.
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