Give AI $100K To Invest and See How Much It Makes in a Month

There are a lot of things that popular AI ChatGPT can do, such as write the perfect cover letter to get a job, analyze a text and summarize it all within seconds, and maybe even find a way to make you some money , as well. With artificial intelligence (AI) ramping up its expertise every day, it was only a matter of time before it got into the investing game.

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But how much can ChatGPT — and other AI platforms — help with your investments? GOBankingRates asked some money and tech experts about what happens if you give ChatGPT $100,000 to invest .

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Understand What AI Does — And Doesn’t Do

It’s important to keep in mind that, while ChatGPT may give you information and context on investments, it doesn’t do the investing for you.

“It’s crucial to clarify a fundamental misconception: ChatGPT, or any AI language model, cannot directly invest money,” said Abid Salahi, a co-founder of FinlyWealth . He described the notion of ChatGPT receiving $100,000 to place in a portfolio as a misunderstanding of the capabilities that artificial intelligence possesses, as well as the investment process at large.

ChatGPT is not the AI-generated algorithm that several fintech firms and robo-advisors use to sort through market data analysis, determine risk tolerance and get tips for portfolio allocations. However, there are other methods, such as AI-enhanced research tools, that can make money moves beyond anything the investment world has seen before.

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Using AI To Invest

Salahi explained that AI-enhanced investing platforms manage investors’ funds based on AI-driven insights. “Investors and financial advisors use AI-powered analytics tools to process vast amounts of economic data, identify trends and generate investment ideas.”

He added, “Human experts still make the final investment decisions,” so it’s not all in the hands of AI technology. In fact, Salahi cautioned anyone looking to invest to not have an over reliance on AI.

Human Insight Still Matters

“Some investors need to understand the underlying logic to invest more in AI predictions,” Salahi explained, adding that this leads to ignoring market fundamentals. “AI might identify patterns but can’t predict unexpected events or market shifts.”

Lack of oversight is another problem with artificial intelligence money platforms, Salahi said. “Automated AI-driven trading without human supervision can lead to significant losses if algorithms malfunction.”

Investing $100K With AI

“Regarding personal stories of $100K investments, it’s important to note that investment returns can vary widely, and past performance doesn’t guarantee future results,” said Salahi. “In my experience, clients using AI-enhanced investment tools as part of a broader strategy have seen returns ranging from 5% to 15% in a month during [favorable] market conditions.”

One of Salahi’s clients, who wished to remain anonymous, shared their experience. “I invested $100,000 in an AI-assisted robo-advisor platform last year. In the first month, my portfolio grew by 7.2%. But it’s crucial to understand that this was during a bull market, and the following months saw both gains and losses.”

Investing in Your Business

Chris Dukich, the owner of Display Now , discussed the process of creating a customer service optimization and marketing outreach automation platform utilizing a conversational AI tool that uses ChatGPT’s API. Putting $100,000 into the project, with the goal of decreasing response times while amping up lead quality via customer interactions, Dukich noticed a 40% decrease in average time taken to respond by support agents, along with 15% rise in lead conversion rates.

“These figures alone meant huge returns on investment, because all those extra sales were directly attributable only to those parts of our system [that] had been upgraded thanks [to] chatbots’ ability provide customers with accurate information about products or services they wanted quickly enough so that we could close deals, henceforth earning additional $120,000 during that month alone,” Dukich explained.

Other business owners, while they may not have given $100,000 to ChatGPT for a return on investment, have also found that the integration of AI platforms into their companies has increased customer interaction workflow, in addition to cutting down support costs by about 60% in the first 90 days.

With the resources freed up in these departments, expansion across the company could happen elsewhere, with one business owner reporting a 25% increase in productivity companywide.

So, while this might be an indirect ROI from injecting money into AI, several business owners told GOBankingRates that this has been a significant change to their business model, opening new doors for increased profitability and sustained growth.

Even with the amount of progress along ChatGPT and other AI platforms, Dukich noted that there are a couple of things he would do differently on the next go around, mostly by not underestimating the learning curve.

“Unlike many other plug-and-play systems out there today, machine learning algorithms still require much effort before becoming useful tools for organizations like ours — people need not only [to] understand them but have very specific knowledge about their own enterprises’ operations, too,” Dukich said.

Should You Invest With AI?

The majority of experts who responded to GOBankingRates’ request to weigh in on this topic resoundingly said that it’s not a good idea to give ChatGPT any money, let alone an amount like $100,000 for an initial investment.

That’s because if you are a business owner — well established or just starting out — you need to have access to capital funds at a moment’s notice to cover expenses. Should you find yourself relying on a return on investment strategy set up on an AI to produce a revenue stream, the chances are high that you’ll miss out on time sensitive deals, transactions and other opportunities.

Many experts did give AI its due, pointing out how artificial intelligence platforms have paved a new path of the automation of simple tasks. At the end of the day, however, it does not replicate or replace the judgment of living people who have a relationship to each other, as well as their finances. Technology, even with its advanced upgrades and expansions, continues to have limitations and should not be relied on for financial investment moves.

A generic bot currently cannot provide real world expertise and offer wisdom from a history of understanding market problems and solutions like a human being.

This article originally appeared on GOBankingRates.com : Give AI $100K To Invest and See How Much It Makes in a Month