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'ChatGPT, what stocks should I buy?' AI fuels boom in robo-advisory market
As ChatGPT approaches its third anniversary, 10% of retail investors are using chatbots for stock selection, propelling growth in the robo-advisory market, expected to reach $470.91 billion by 2029 from $61.75 billion in 2022. However, experts caution that this AI strategy carries risks and cannot yet replace traditional advisers.
Key points
- 1. Increasing adoption of AI-powered tools: 10% of retail investors use chatbots for stock picking.
- 2. Growth in robo-advisory market: Forecasted to grow from $61.75 billion in 2022 to $470.91 billion by 2029.
- 3. Democratization of investment advising: AI enables broader access to tools once reserved for institutional investors.
- 4. Risk considerations: While beneficial, experts advise caution as AI cannot fully substitute for human advisers yet.
Why it matters
- The boom in robo-advisory reflects growing trends in AI adoption in fintech and investment, aligning with 2025 IT trends focused on AI-driven automation.
- Increased interest in self-directed investing corresponds to historical movements towards accessible financial technology.
- The rise of AI in finance parallels other industries experiencing disruptive technological growth, highlighting the broader impact of AI.
The surge in AI-driven stock selection tools has transformed the advisory landscape, foreshadowing a significant shift in investment practices, but traditional guidance remains essential in navigating risks.