AI Chatbots Surge 600% as Retail Investors Turn to ChatGPT for Stock Picks

AI in Retail Investing: A Finance Professional’s View

In recent months, the finance world has witnessed an unprecedented surge in the use of AI chatbots for retail investing, with usage figures skyrocketing by over 600%. As a woman working in finance, I view this trend with both optimism and caution, recognizing the transformative potential of artificial intelligence while also emphasizing the need for measured investment strategies.

The Rise of AI-Powered Stock Picking

Retail investors—many of them new to the markets—are increasingly turning to tools like ChatGPT to identify investment opportunities. Unlike traditional research or brokerage platforms, AI chatbots provide instant responses, generate tailored insights, and often present information in a way that feels conversational and accessible. For first-time investors, this is empowering, as it reduces the intimidation often associated with financial research.

Why the 600% Surge Matters

A sixfold rise in adoption is not just a passing trend. It illustrates how technology is changing retail participation in capital markets. Women, younger professionals, and global retail traders are benefiting from democratized access to financial information. However, there is a distinction between access to information and sound financial decision-making.

Opportunities for Investors

• Educational Tool: Chatbots can simplify complex topics, from understanding balance sheets to explaining technical indicators.
• Accessibility: Unlike brokerage research reports locked behind paywalls, AI provides open, real-time support.
• Market Awareness: Retail investors are becoming more informed, raising overall market literacy.

Potential Risks

As someone who has worked with risk management teams, I cannot ignore the concerns:

• Accuracy and Bias: AI-generated stock picks may lack context or verification.
• Herd Mentality: Heavy reliance on similar AI-generated recommendations could increase market volatility.
• Overconfidence Trap: Easy access to advice might lead inexperienced investors to miscalculate their risk tolerance.

A Balanced Approach

AI should be viewed as an assistant, not a replacement for rigorous research and professional guidance. The responsibility lies in combining data-driven insights with disciplined portfolio strategies. Diversification, fundamental analysis, and risk management remain as relevant in 2025 as they were decades ago.

For women in finance and retail investing communities, AI offers an equalizing force—empowering us to participate in markets on an even footing. And yet, it is also a wake-up call to reinforce financial literacy, mentorship, and critical thinking.