AI-Built Stock Portfolio Beating Human Funds

A stock portfolio built by artificial intelligence (AI) is beating a number of different human index funds as the technology appears poised to disrupt the traditional economy.

Researchers used the increasingly-popular ChatGPT program to create a stock portfolio. The 38 stocks selected by the AI have increased by approximately 5% over the last two months, a major improvement on a number of popular human-created funds.

The 10 human-built funds declined by almost 1% during the same period.

The chatbot built a portfolio around a number of companies, including Coca-Cola, Amazon, Intel and Berkshire Hathaway. The artificial intelligence chose the stocks for having a low level of debt and “assets that generate an advantage over their competitors.”

The use of artificial intelligence to build a stock portfolio opens a number of ethical and legal questions for the near future.

Furthermore, the use of AI technology also shows that nearly every part of the economy will be shaped by it in months or years.

OpenAI, which developed ChatGPT, recently unveiled its more powerful successor, GPT-4. The new program is able to pass a number of human-oriented tests, including passing law and business tests, among others.

Other programs have been able to develop music and near-photorealistic images.

AI choosing a stock portfolio isn’t the only executive decision driven by the tech, either. A Chinese-based company named an AI program as its CEO and is now booming.

NetDragon Websoft made an “AI-powered virtual humanoid robot” its CEO last summer. The company’s stock increased by 10%.

NetDragon Websoft’s founder Dejian Liu said last year that “AI is the future of corporate management.”

Jack Ma, CEO of Alibaba and one of the wealthiest people on earth said recently that “a robot will likely be on the cover of Time magazine as the best CEO.”

Beyond corporate leadership, AI technology will likely disrupt a large swath of the labor market. A recent report by Goldman Sachs estimates that about 7% of the American workforce will lose their jobs due to the technology.

These positions are mostly white-collar in nature, including a number of office and administrative positions.