ChatGPT is one of the fastest-growing consumer applications in digital history, surpassing 100 million users within the first several weeks of its November 2022 launch. One of the various reasons people found to use this chatbot created by OpenAI is to help research potential stock picks.
The Motley Fool wanted to find out more about ChatGPT and so it commissioned a survey on that subject conducted by Pollfish on April 19. A major finding was that 47% of ChatGPT users said they had asked the artificial intelligence (AI) machine for stock recommendations. While women outnumbered men 59%-41% among the 2,000 respondents, it was interesting that men were more likely to have used ChatGPT for picking stocks: 55% to 42%.
You can check out the whole article on the survey for more results, including how much wealthier and younger investors are likely to use and trust ChatGPT for help with stock picking.
For the purposes of this report, let's look at why one gender might be more skeptical than the other when it comes to AI-assisted stock picks, and why they just might be right.
Image source: Getty Images.
Don't ask, do tell
Decades of research has shown that there are gender differences in investing. There could be multiple reasons why women appear to be less likely than men to use ChatGPT to aid in investing. The reasons could include confidence levels, a preference for personal connections, and just a general lack of awareness around investment goals and the power of investing over simply saving. All that could be a result of what some would say is a history of gender bias in the investing world.
ChatGPT doesn't ask who's asking and it can be hesitant to get specific, depending on the topic. From my own use of the program, it doesn't easily make stock picks, at least for now. I've asked it multiple times and in multiple ways about individual stocks and always got the same answer: "As an AI language model, I don't have the ability to make stock recommendations or investment advice, as I don't have access to real-time financial data, nor do I have the ability to make investment decisions."
What it can do, it says, is this: "I can provide information and insights on various aspects related to stocks and investing. If you have any specific questions or topics you'd like to discuss, I'll do my best to provide helpful information and insights based on my training data." That training data includes gauging the possible impact on a stock price from things like competitive pressures or social media sentiment, as well as a wide range of company metrics such as earnings per share and sales.
How to put a bot on the spot
Now, I know there are multiple articles on the internet about how to trick the AI bot into making some specific stock recommendations. Those reports and the stocks the AI chose for them have seen mixed results in the short time ChatGPT has been available.
Besides the mixed results, the process of convincing ChatGPT to play along might seem like a lot of work to some, especially those who value a personal connection with someone they trust when it comes to something like investing. Indeed, multiple studies point to women perhaps being more risk-averse than men when it comes to investing, even though women may overall be better investors.
Lack of confidence and awareness may be a big part of that, and a process that is so opaque as machine learning seems very impersonal, which could be a turnoff for some when it comes time to choose how to invest. This may not be about the recommendation, but rather about distrusting a chatbot to make the pick.
After all, technology can only go so far in providing personalized investment advice. Those with personal connections -- whether professional or familial or both -- may have a deeper understanding of an individual's goals, values, and risk tolerance, and can provide tailored recommendations that take those factors into account. The chatbot of today isn't sophisticated enough (yet) to advise on that level.
Nothing artificial about this intelligence
What this amazing technology can do is use its once-unimaginable capabilities to continually improve. And there's certainly room for improvement.
Again, here's one example using my own experience. I asked about me. ChatGPT got my profession right but was nearly completely wrong about the sites and publications that I write for. I'm not a regular webinar presenter, either, and have never once done a podcast (at least, not on purpose) despite what the chatbot suggested.
I also asked ChatGPT, "What's the best single stock for a woman to invest in?" Again, the answer: "As an AI language model, I cannot provide specific investment advice or recommend any particular stock to invest in. Every investor's financial situation and investment goals are unique, and it's important to do thorough research and consult with financial professionals before making investment decisions."
Nothing artificial about that intelligence.
