AI fuels boom in market for robo-advisory services

As ChatGPT nears its third birthday, at least one in 10 retail investors is using a chatbot to pick stocks, fuelling a boom in the robo-advisory market, but even fans say it is a high-risk strategy that cannot replace traditional advisors just yet.

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The robo-advisory market is forecast to grow to $470.91 billion in revenues in 2029. — REUTERS FILE

(REUTERS FILE)

Thanks to artificial intelligence, anyone can select stocks, monitor them and obtain investment analysis that was once only available to big banks or institutional investors.

The robo-advisory market - which includes all companies providing automated, algorithm-driven financial advice such as fintech, banks and wealth managers - is forecast to grow to $470.91 billion in revenues in 2029 from $61.75 billion last year, marking a roughly 600 per cent increase, according to data analysis firm Research and Markets.

Jeremy Leung, who spent almost two decades analysing companies for US has been using ChatGPT to chase stocks for his multi-asset portfolio since he left the Swiss bank late last year.

“T no longer have the luxury of a Bloomberg (terminal), or those kinds of market-data services which are very, very expensive,” Leung said.