With the development of technology, artificial intelligence (AI) is gradually penetrating into every aspect of our daily lives. Perhaps the most forward-looking and controversial area is financial markets, especially stock markets. In recent years, the ability of AI to invest in the stock market is being explored globally, and there have even been cases of real stock trading based on ChatGPT, which has aroused widespread attention from the industry and the public.
Take Autopilot, a financial services company that recently launched a ChatGPT-led investment program with an initial capital of $50,000. Investment plans select investment targets through AI technology analysis, news and company reports. Initial investments in stocks including Berkshire Hathaway, Amazon, dr.horton and Davita Health were up about 2% just two weeks later, similar to the market's overall gains.
The investment program now has nearly 25,000 participants, raising more than $14.8 million, an average of about $600 per person, and the number continues to grow. Subsequent investment funds will automatically follow the transaction, indicating the in-depth application of artificial intelligence in the investment field and the keen attention of the general public.
In addition, we can also see the power of AI in stock market investment from other scenarios. Two professors in the Department of Finance at the University of Florida developed an investment strategy using ChatGPT 3.5 that generated returns of more than 500% between October 2021 and December 2022 by leveraging public market data and news. Similarly, an experiment Finder.com showed that stock portfolios selected by ChatGPT outperformed some of the UK's most popular investment funds.
However, the performance of AI in the field of stock market investment is not always sunny. For example, cryptocurrency derivatives platform Bitget has encountered some setbacks in its initial practice. The company has tried to use AI to trade on the platform, but their users have repeatedly received fake investment advice and other misinformation. These negative experiences led Bitget to finally abandon its experiments with using AI on the platform. Their survey found that up to 80% of users have had a negative experience with AI. All this has undoubtedly brought a shadow to AI in the field of stock market investment.
Gracy Chen, managing director at Bitget, noted that while AI tools are powerful and strategic, they still can't accurately interpret subtle differences and trends in the market. This view reflects the current doubts of some financial experts about the ability of AI to invest in the stock market. Indeed, while AI can efficiently process large amounts of information, the question remains as to whether AI can understand and use subtle, difficult-to-quantify information in the face of a complex and volatile stock market environment.
However, we cannot deny the value of AI in the field of stock market investment because of some difficulties and challenges. In fact, we've seen ChatGPT shine in stock market investing. Through deep learning and big data analytics, AI can process and analyze far more information than humans can process, giving it a potential advantage in investment decisions in the stock market. As long as we can overcome the current difficulties and find suitable application methods and rules, AI can undoubtedly bring new possibilities for our stock market investment.
This also provides some food for thought for those looking to leverage AI for stock market investing. While we rejoice in the return on investment that AI brings, we should also be mindful of the risks of AI investments. How can we avoid Bitget's problems? How can we use AI to invest while ensuring that our decisions are based on accurate information and not fake investment advice?
Overall, the potential of AI investment in the stock market is still worth looking forward to. Whether it is the practical application of Autopilot or the research experiments of the University of Florida and Finder.com, we see the great potential of AI in the field of stock market investment. But at the same time, we should also see that the application of AI in stock market investment still faces many challenges.