A bot for your money? Wealthtech firms divided on tapping genAI for investment advice

Simon Huang contributed to this story.

Should you be turning to ChatGPT for financial advice?

The answer depends on who you ask.

Portfolios comprising stocks chosen by ChatGPT have grabbed headlines for outperforming top funds, as one did recently in the UK.

But operators of investment platforms are skeptical – not least because stock picking, in their opinion, isn’t sound financial advice.

Image credit: Timmy Loen

“Of course a random portfolio, at any point of time, can beat the market. But has it been tested over different scenarios? Has it been tested over a long period of time?” Caesar Sangupta, CEO and co-founder of Arta Finance, asks Tech in Asia. The firm allows accredited investors invest in alternative assets from top fund managers with a minimum of US$10,000 – a fraction of the millions typically needed.

However, former investment banker Rakesh Bhunatar has an entirely different take.

After all, Pi, the genAI-powered investment startup that he founded in India, was designed specifically to answer “any question relating to money matters” including investing.

Not surprisingly, one of the most common questions asked by users is whether they should buy a particular stock. Bhunatar says that Pi’s platform can also give suggestions on how to become debt-free in five years, whether to buy or rent a house, among other concerns.

By Bhunatar’s estimates, around 100 million users in India are new to investing and aren’t actively using fintech services. Pi is targeting those who earn between 500,000 rupees to 2.5 million rupees (US$6,020 to US$30,100) in annual income, who aren’t being adequately served by financial advisers or existing fintech services, and who are turning to financial influencers on the internet for investment guidance.

In addition to stock recommendations, Pi’s platform can also give suggestions on how to become debt-free in five years, whether to buy or rent a house, among other concerns. / Image credit: Pi

Relying on a bot for stock picking might not be everyone’s cup of tea. But what the industry players who spoke to Tech in Asia agreed on is the role that genAI could play in shaping investment advice.

Injecting a personal touch

Combining genAI with AI

Big banks get in the game