62% of Global Retail Investors Use AI for Stock Trading Decisions, Recent Surveys Show

According to Financial News, retail investors are increasingly turning to AI tools like ChatGPT for stock investment decisions. A March survey by Investing.com of 938 U.S. investors found that 62% use AI in investment decisions, with 26.6% following AI-generated trading ideas multiple times. In South Korea, this trend mirrors global patterns, with individual investors using large language models for stock picks, portfolio management, and financial analysis.

However, researchers from University of Edinburgh, Sungkyunkwan University, and UCLA found that AI-based active trading strategies with frequent rebalancing underperformed simple buy-and-hold strategies over 20 years of testing. Experts warn that AI lacks consistency and can generate false information (hallucinations), making direct buy-sell decisions risky. AI is most effective for summarizing corporate filings and analyzing company fundamentals, not for timing market entry or exit.