Does ChatGPT provide better advice than robo-advisors?

Andreas Oehler and Matthias Horn

Finance Research Letters, 2024, vol. 60, issue C

Abstract: We develop three investor profiles with different risk attitudes and consult ChatGPT and 17 robo-advisors to recommend an investment portfolio. We compare the recommendations with a benchmark derived from academic literature. ChatGPT's recommendations align with the three investor profiles and the benchmark. In contrast, only three out of the 17 robo-advisors come close to meeting the benchmark for all three investor profiles. Three robo-advisors fail to meet the benchmark for all investor profiles. Our findings reveal that ChatGPT provides better financial advice for one-time investments than robo-advisors. A policy implication is to clearly disclose that independent sophisticated chatbots can be recommended as a trustworthy source of information for retail investors.

Keywords: ChatGPT; Robo-advisor; Fintech; Portfolio management; Financial advice (search for similar items in EconPapers)
JEL-codes: C45 D14 D80 G11 G14 G20 G50 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323012709
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012709

DOI: 10.1016/j.frl.2023.104898

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().