The ChatGPT plugin will be fully open next week, which is the first officially certified "Investment Plugin"

Author: Bu Shuqing

OpenAI has released another big move. Next week, it will open the networking function and many plug-ins to all ChatGPT Plus users, allowing ChatGPT to access the Internet and use more than 70 third-party plug-ins.

One of the plugins, called Portfolio Pilot, got all investors excited.

**Users can copy and paste their portfolios into the tool for analysis, get investment advice, search for market information, and ask it questions. **

** Best of all, all of this is free. **

Portfolio Pilot was co-founded by AI software entrepreneur Alex Harmsen and released as early as early May, claiming to be the first officially certified "Investment Plugin".

Harmsen said the software is backed by hedge fund models.

He said in a statement:

We have an ambitious mission to create a complete picture of how the economy works. This would dramatically improve investment for millions, reduce risk in decision-making, and remove huge inefficiencies in the financial sector.

In fact, since the ChatGPT interview in November last year, some people have tried to use this chatbot to pick stocks.

A recent Motley Fool study found that 47 percent of U.S. adults already use ChatGPT for stock picking, and 69 percent said they would do so.

Americans with higher incomes are the most likely to use ChatGPT for investment advice, with 77% saying they have used it for stock picking, according to the survey.

So, let's see how ChatGPT performs with the new investment plugin?

First, the user asked what is the best low-expense rate gold ETF. ChatGPT not only gave the name of the ETF, but also gave key data such as annual return and expected return.

It also compares earnings expectations for two stocks.

After the user uploads his portfolio data, **ChatGPT not only gives the score of the portfolio in just a few seconds, but also gives suggestions for improvement. **

** It is also easy to query the stock price, price-earnings ratio, earnings conference call schedule, and company news of listed companies. **

When users ask about Tesla's latest news, ChatGPT not only states the news, but also provides sources and URL links.

It can be seen that ChatGPT can indeed answer simple investment questions and get rid of the problem of "nonsense".

Hyungjin Ko and Jaewook Lee of Seoul National University believe that it could be a convenient option for investors who lack asset management knowledge or expertise, and that even professional portfolio managers can use ChatGPT to improve their work efficiency .

ChatGPT is not a "prophet" of the financial industry

But it doesn't help investors predict market movements.

Earlier this year, two researchers tested ChatGPT’s financial capabilities by having it create a portfolio from 40 assets — including U.S. large-cap stocks, cryptocurrencies, commodities, currencies and bonds.

The test was run 10,000 times, during which the AI's work was compared to a randomly selected portfolio**. The researchers found that ChatGPT outperformed random portfolios and created sufficiently diverse portfolios. **

"ChatGPT can identify abstract relationships between assets, especially in terms of how they differ from asset classes," the researchers wrote.

However, the researcher pointed out that ChatGPT should not be used as a market prediction machine, and other users have also pointed out that it has provided wrong information.

** "ChatGPT is not the 'prophet' of the financial industry, but rather the 'assistant' or 'co-pilot' of investors and portfolio managers," the researchers wrote. "When properly used within established frameworks, ChatGPT has the potential to revolutionize Asset Allocation Practices."**

At that time, ChatGPT's data was still based on information before September 2021, so factors such as the Russia-Ukraine conflict in 2022, inflation, and the Fed's aggressive tightening process were not taken into account.

But by next week, OpenAI will launch networking and plug-in features to all ChatGPT Plus users, which means that the last seal has been completely lifted** and it will use the latest information and information to provide services to users. **

The study concludes:

It is important to note that the role of human experts in portfolio management remains critical as they must work in tandem with theoretical frameworks and investment theories to ensure proficiency in validating accurate information from LLMs (Large Language Models) and reliability.