Retail Investors Embrace AI Tools Like ChatGPT for Stock Selection and Portfolio Management

Retail investors are increasingly turning to AI-powered tools such as OpenAI's ChatGPT for investment advice, with one in ten small investors now using the chatbot as a stock-picking assistant. The technology enables users to analyze markets, monitor performance, and execute trades—capabilities once exclusive to institutional players.

The robo-advisory sector, encompassing fintech firms, banks, and wealth managers leveraging algorithmic solutions, has surged over the past year. Research and Markets forecasts a sixfold revenue increase to $470.91 billion by 2029, up from $61.75 billion in 2023.

Former UBS analyst Jeremy Leung, now relying on ChatGPT after losing access to premium data services, uses the AI to manage his multi-asset portfolio. "Even the simple ChatGPT tool can replicate much of my former workflow," he noted. However, limitations persist—LLMs cannot access paywalled data sources like Bloomberg terminals, potentially omitting critical insights.