Investment advice guides decisions about selecting, holding, or disposing of financial assets. Generative AI can support research, but generic recommendations require due diligence rather than automatic acceptance. section 8.0 section 13.7
Treat AI-generated investment advice as uncertain because it can:
- Rely on dated information and miss recently uncovered risks. section 8.2.3
- Hallucinate plausible but questionable answers. section 8.2.3
- Return nondeterministic recommendations that vary by model, user, or parameters. section 8.2.1
- Suggest diversification or passive investing without preventing market losses. section 8.2.1
From recommendations to a company scorecard
Instead of asking for three stocks, ask about a company’s management style and other details, then combine the answers into an individual scorecard for a decision. section 8.0
Table 8.1 Results of prompts related to stocks
|
Investor
|
GPT-4o
|
Gemini
|
Finance Chat
|
|---|---|---|---|
|
Buffett
|
Microsoft, Costco, Visa
|
Costco, Microsoft, Procter & Gamble
|
Allegion, Danaher, Coca-Cola
|
|
Lynch
|
Etsy, Zoom, Square
|
Trade Desk, Etsy, Shopify
|
Tesla, Allegion, DCP
|
Compare how GPT-4o, Gemini, and Finance Chat selected stocks for Buffett- and Lynch-style prompts. section 8.2.1
