SEO description: "A new study by TU Dresden shows how AI tools such as ChatGPT can help with investment decisions and questions whether traditional financial advisors will still be needed in the future."
At a time when artificial intelligence (AI) is increasingly being used in various industries, a study by TU Dresden has now investigated how AI, in particular ChatGPT-4, can support investment decisions. According to the research findings of Professor Lars Hornuf and his team, the portfolio suggestions generated by ChatGPT-4 are comparable to those of professional investment advisors.
The financial world is facing a potential revolution. Many investors feel overwhelmed when choosing a suitable investment and traditionally rely on the recommendations of financial advisors. However, these are often subject to conflicts of interest, which can lead to recommendations that serve the advisor more than the client. Hornuf, who teaches business administration with a focus on financial services and financial technology at the TU Dresden, explains the problem and emphasizes the importance of unbiased advice.
The study, which was conducted in collaboration with the KU Eichstätt-Ingolstadt and the Bremen University of Applied Sciences, shows that ChatGPT-4 is able to provide individual investment recommendations. These are based on a comprehensive understanding of the investor's risk tolerance, investment horizon and age. What is particularly interesting is that the AI only recommended low-cost exchange-traded funds (ETFs) managed by renowned asset managers.
Another finding of the study is that ChatGPT-4's explanations of the recommended investments could increase the AI's acceptance as a financial advisor. Hornuf notes that while ChatGPT-4 has not been trained specifically for financial advice, it still provides effective and sensible investment recommendations.
The study raises the question of whether traditional financial advisors could be replaced by AI in the future. The implications are far-reaching, not only for investors, but also for the financial advisory industry as a whole. The researchers are already planning further studies to further explore the effects of AI in financial advice.
The results and implications of this study are not only important for professionals, but also for investors. They show that AI can be a valuable tool for making informed investment decisions, while raising questions about the role and value of traditional financial advice in an increasingly digitalized world.
