Experts urge caution about using ChatGPT to pick stocks

A growing number of retail investors are turning to AI chatbots like ChatGPT for stock-picking advice, with around 1 in 10 investors consulting these tools, according to a Reuters report. Data from a survey of 11,000 retail investors worldwide shows that 13 percent are already using AI tools like ChatGPT or Google's Gemini for stock selection, and half are open to using them for portfolio decisions. Unlike algorithmic trading, where computers execute trades automatically, investors are using ChatGPT as an advisory tool, typing questions and manually deciding whether to act on the AI model's analysis through their brokers. Experts caution about relying solely on AI chatbots for stock market decisions.