As ChatGPT nears its third anniversary, the AI boom is reshaping personal finance: at least 1 in 10 retail investors are already using chatbots to pick stocks, fueling an unprecedented surge in the robo-advisory market.
The industry — which includes fintech startups, banks, and wealth managers offering automated, algorithm-driven financial advice — is projected to soar from $61.75 billion in 2024 to nearly $471 billion by 2029, according to Research and Markets.
Former UBS analyst Jeremy Leung, who now relies on ChatGPT to manage his portfolio, says AI tools replicate many workflows once exclusive to expensive terminals like Bloomberg. “Even a simple tool can do a lot,” he said, though warning that free models miss crucial data hidden behind paywalls.
Adoption is rising fast:
- 13% of retail investors worldwide already use AI for portfolio management, according to broker eToro.
- Nearly half of investors say they would consider using AI tools like ChatGPT or Google’s Gemini.
- In the UK, 40% of respondents in a Finder survey admitted turning to AI for personal finance advice.
But experts warn of risks. AI tools like ChatGPT stress they are not financial advisors, and industry leaders caution that general-purpose AI models can misquote figures, lean on old data, or present biased narratives.
Still, ChatGPT’s trial portfolio shows striking results: a basket of 38 stocks it recommended last year — including Nvidia, Amazon, Procter & Gamble, and Walmart — has surged nearly 55%, outperforming top UK-managed funds by 19 percentage points.
Despite this success, analysts caution against overconfidence. “If people get comfortable investing using AI and they’re making money, they may not be able to manage in a downturn,” said Leung.
With global indexes rallying — the STOXX 600 up 10% this year and the S&P 500 gaining 13% after a 23% surge in 2024 — the boom in AI-driven investing could face its first real test when markets shift.
