But not everyone is convinced by data reliability
ChatGPT is gaining popularity in the US. According to a recent study by The Motley Fool, 47% of US adults claim to have used ChatGPT for stock recommendations, demonstrating that Americans are excited about the potential for AI to revolutionize investing.
"The scale of this percentage is surprising, but it confirms what many of us are witnessing," said Asit Sharma, The Motley Fool's senior analyst and lead investor. "The nature of search, and what we require from it, is changing in real-time, and millions of Americans are eager to try out this new world hands-on."
Since its debut in November 2022, ChatGPT has been used to forecast how the markets would respond to Federal Reserve comments and stock movements. Not only financial experts but also Americans with high incomes, Gen Z, and Millennials are interested in using ChatGPT to increase investment returns, according to a Motley Fool poll.
However, not all Americans are impressed by the buzz around ChatGPT. Baby boomers are hesitant to use ChatGPT for stock suggestions, and Americans of all ages and income levels are not entirely convinced by the precision of ChatGPT's stock recommendations or the reliability of the data it provides.
According to a Motley Fool poll, 47.7% of American people have used ChatGPT for financial advice.
Breaking previous records, ChatGPT reached 1 million members in five days and 100 million in two months. It took Instagram over two years to gain 100 million users and 2.5 months to land 1 million downloads.
Online analytics firm SimilarWeb revealed that ChatGPT was accessed by about 1.6 billion people in March 2023 alone. Finding a financial tool with such an uptake rate is difficult but it's also hard to locate an alternative application that has gained as much widespread traction as ChatGP has.
“The rush on the part of companies like Microsoft and Alphabet to provide front end tools (and back end capacity) for ChatGPT, Bard, and other large language models, similarly supports the survey’s finding,” Sharma added.
“Interest is exploding in harnessing the capabilities of these models for use cases across innumerable industries. So, while the sheer percentage of Americans test-driving ChatGPT for investing is eye-opening, it’s not hard to understand,” he said.
With 53% of millennials and 50% of Gen Z utilizing ChatGPT to find stock selections, these generations are leading the way in the use of the platform for investment advice. Only 25% of baby boomers have used ChatGPT, indicating that older Americans have not adopted it as quickly. With 46% of Gen Xers using it for investing advice, they are more comparable to younger Americans.
“A lifetime of investing in the U.S. markets has taught [baby boomers] to take new advances in investing with appropriate caution, and that it’s ok to let the kinks get worked out, before jumping in,” said Sharma.
Compared to 42% of women, 55% of adult American males utilized ChatGPT for financial advice. This is probably because women tend to invest more conservatively, are less active, are less impulsive, and are more likely to maintain their composure when the market is volatile. Women investors have recently outperformed males, which has made them less trusting of a novel and somewhat unproven instrument like ChatGPT.
In contrast to the 47% of American people who have already used ChatGPT, 69% would consider utilizing it in the future for financial advice. The least likely demographic to use ChatGPT for stock advice in the future is the baby boomer generation (48%).
Americans value stock performance more than a tool's price and speed in generating recommendations. ChatGPT's stock suggestions are ranked higher in this regard.
Ability to confirm information using sources and data is the second most critical component, while cost is the third most critical factor. The ability to provide suggestions quickly is the least significant aspect because ChatGPT's capacity to generate sophisticated query replies promptly is one of its most outstanding features.
