Nearly One In Five Young Australian Adults Use ChatGPT-Style AI To Pick Investments, according to eToro. Image source: Getty AI Tax: The Australian Tax Office is now using artificial intelligence to claw back some taxes from dodgers who have been under the radar.

Nearly One In Five Young Australian Adults Use ChatGPT-Style AI To Pick Investments. Does It Work?

2 min read

This article is for general information purposes only and isn’t intended to be financial product advice. You should always obtain your own independent advice before making any financial decisions. The Chainsaw and its contributors aren’t liable for any decisions based on this content.



18% of young Australians aged 18 to 34 are already using artificial intelligence (AI) tools like ChatGPT to help pick investments in their portfolio, according to latest data by trading platform eToro.

eToro conducted a study of 10,000 retail investors across 13 countries, including 1,000 from Australia to find out how they are making use of tech’s latest darling to better their investment decisions.

Interestingly, nearly a third (27%) of Aussies aged 35 to 44 say they’re already using AI tools like ChatGPT to manage their portfolios – higher than the 18 to 34 year old age group who are usually viewed as more technologically savvy. Only 3% of Aussie investors over the age of 55 say they’re using AI tools when investing. 

AI, ChatGPT, and investing

But why entrust your entire fortune to a machine? According to the study, nearly half (48%) of Aussie investors believe that AI “can save time on research.” In addition, 47% say that AI is “the future of investing”, and 37% say that AI “can make better decisions”. 28% also express that they have more faith in AI picking their investments compared to a human fund manager.

“AI harnesses the ability for retail investors to analyse vast amounts of data, generate new investment ideas and overcome human biases, whilst saving themselves precious time,” Josh Gilbert of eToro explains to The Chainsaw.

“This means that AI has the potential to tilt the scales more towards retail investors and provide them with the tools to make better-informed investment decisions,” he adds.

Technology stocks that centre around AI are also, unsurprisingly, attracting much interest from retail investors. eToro’s report states that Australian investors, in general, “are very bullish about the technology sector”.

“When asked which sectors they are most likely to increase their investment in for the remainder of 2023, 13% said technology, with over 90% of this group singling out AI specifically,” noted eToro.

AI-assisted investment: is it working?

As AI continues to shake up not just Silicon Valley but the rest of the world, some industry experts have coming out to warn of a potential bubble. But is the ‘AI-assisted strategy’ working for investors?

Yes and no is the short answer. The long answer is that perhaps you might have a punt using AI to pick your investments, and get back to us with results.

Investing in AI has clearly been a winner for investors this year, with names such as Nvidia, Palantir and Microsoft seeing significant gains, alongside eToro’s AI Revolution Smart Portfolio gaining 40%. It’s important to remember that we’re still seeing this technology develop and so it isn’t without its faults, Gilbert explains to The Chainsaw.

I’d encourage anyone considering using AI tools in their investment strategy to thoroughly research their options and to handle their portfolio carefully. Specific AI-powered ETFs such as AIEQ, powered by IBM’s Watson platform, has so far underperformed compared to the S&P500 and the Nasdaq this year, he adds.

There is a big difference between investing in AI and letting AI choose your investments.