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Sorry, Cyberdyne Systems Model 101, also known as the Terminator, we are finally heading for an automation apocalypse. In this sense, the fast development of artificial intelligence could lead to dramatic changes in both technology and society.
As for the latter, the list of occupations where algorithms could replace humans includes: data analysts, graphic designers, college essayists, market researchers, delivery drivers, HR recruiters, and the list goes on and on… Who knows, maybe even financial analysts will lose their job to machines.
Despite this ethical conflict, investments in “computing” are posed to surge by 20.7% globally in 2022, compared to the figures for 2021. With the launch of ChatGPT, developed by OpenAI, the flow of capital into the sector could accelerate even further.
The multitasking chatbot is already capable of answering users’ questions and creating unique content: composing poems, programming code and even writing poetry and articles. The good news is that in the financial sphere, the robot is still a novice.
When asked to “develop an ETF that beats the US stock market”, ChatGPT overlooked the unpredictability of the environment and a number of common phrases. As Bloomberg points out, the bot may actually know the secret to beat the market, but it is smart enough not to reveal it.
Over time, however, ChatGPT could improve its investment skills. It is worth mentioning that AI already helps to optimize investments. The AI Powered Equity ETF, for example, rose by more than 7,6% on a year-to-date basis, while the S&P 500 index rose by around 7,4%.
It is also true that over the longer term, the results are somewhat less impressive. For example, over the past five years, the AI ETF rose 22%, while the S&P 500 index soared 56%. That said, despite technological advances, it is always necessary to conduct one’s own research before entering into a position.
