Investing tips from AI: What happened when an artifical intelligence chatbot was asked to pick five stocks?
- Google’s chat bot Bard was asked to pick five lesser-known stocks to invest in
- Its picks ranged from cybersecurity to online gaming
Google’s new AI chatbot Bard and rival OpenAI’s ChatGPT are dominating the conversation surrounding artificial intelligence at the moment.
The availability of enormous quantities of data and new algorithms have led to major AI breakthroughs in many industries in recent years.
That seems to have accelerated dramatically in rrecent months and AI looks as if it will have major, disruptive impact on many walks of life – including the world of investing.
But can it pick good investments? Broker XTB.com asked AI to provide five stocks that would be good to invest in at the moment. Only time will tell if it gets this right, but we will check back in the future.
Battle of the Chatbots: Bard is Google’s answer to ChatGPT.
Perhaps unsurprisingly, the AI stock picker replied with Apple, Microsoft, Amazon, Alphabet, Tesla.
Due to these stocks being extremely popular and quite obvious choices, Bard was then asked to give five lesser-known stocks that would be good to invest in
Here are its suggestions and reasoning:
Acacia Communications
Acacia Communications is a semiconductor company that makes high-speed data communication products. The company is growing rapidly and has a strong track record of innovation.
CrowdStrike Holdings
CrowdStrike Holdings is a cybersecurity company that provides cloud-based security solutions. The company is growing rapidly and is well-positioned to benefit from the growing demand for cybersecurity solutions.
Marqeta
Marqeta is a fintech company that provides payment processing solutions to businesses. The company is growing rapidly and is well-positioned to benefit from the growing e-commerce market.
Roblox Corporation
Roblox Corporation is a gaming company that operates a popular online gaming platform. The company is growing rapidly and is well-positioned to benefit from the growing popularity of online gaming.
Snowflake Computing
Snowflake Computing is a cloud computing company that provides data warehousing solutions. The company is growing rapidly and is well-positioned to benefit from the growing demand for cloud-based data warehousing solutions.
When it comes to stock indices and which ones were best to invest in, Bard provided the following answer.
Bard said: ‘I would say that the S&P 500 and the Nasdaq Composite are the best options. Both indices have a long history of growth and have outperformed other indices over the long term.
‘The S&P 500 is a market-cap-weighted index of the 500 largest publicly traded companies in the United States.
‘It is a good index to invest in if you are looking for exposure to the U.S. stock market. The Nasdaq Composite is a market-cap-weighted index of all the stocks listed on the Nasdaq stock exchange. It is a good index to invest in if you are looking for exposure to the technology sector.
‘Both indices are relatively low-cost and offer diversification benefits. They are also liquid, meaning that you can easily buy and sell shares.’
XTB.com said: Overall, this artificial intelligence chatbot gave some quite detailed answers into certain questions such as lesser-known stocks to invest in.’
What does an expert think of the AI stock picks?
A quick glance at the AI stock picks shows them to be heavily tech-focussed, so what does an investing expert think?
Jason Hollands, a director of Evelyn Partners, sounded a note of caution. He said: ‘Snowflake Communications and CrowdStrike are both constituents of the Robo Global Artificial Intelligence Index, a part of the market where a lot of hot money is pouring in at the moment, driving valuations into bubble like territory.’
He added: ‘I would caution against anyone buying stocks they are unfamiliar with simply on the basis of a list served up by a free AI chatbot.
‘Generative AI tools like Bard and ChatGPT are hugely fascinating but are designed to generate content and not to select investments.’
He also points out that one of Bard’s suggestions, Acacia Communicatons, was acquired two years ago by tech giant Cisco Systems and is no longer publicly listed itself.
When creating a portfolio for the long term, it’s important to consider the amount of risk you want to take and make sure you diversify across various asset classes, markets, and sectors.
