LONDON, U.K.: What was once the preserve of Wall Street analysts is now available to anyone with a smartphone: stock-picking powered by artificial intelligence. From London to Los Angeles, retail investors are increasingly asking ChatGPT and similar chatbots which shares to buy, helping fuel a rapid boom in the robo-advisory industry.

At least one in 10 retail investors is already using AI chatbots to make investment decisions, according to industry surveys. But even enthusiasts caution that relying on such tools carries high risks and is no substitute for professional advice.

The robo-advisory sector, which spans fintech apps, banks, and wealth managers offering algorithm-driven financial guidance, is forecast to grow from US$61.75 billion in 2023 to nearly $471 billion by 2029, according to Research and Markets.

Jeremy Leung, a former UBS analyst who now runs his own multi-asset portfolio, says ChatGPT has become his personal research assistant since leaving the bank. "I no longer have the luxury of a Bloomberg terminal, or those kinds of market-data services which are very, very expensive," Leung said. "Even the simple ChatGPT tool can do a lot and replicate a lot of the workflows that I used to do." Still, he warned the chatbot "might miss some crucial analyses as it can't access data behind a paywall."

Surveys show the adoption curve is steep. About half of retail investors globally say they would use AI to guide their portfolio choices, and 13 percent already do, according to broker eToro. In the UK, 40 percent of respondents in a Finder survey reported using chatbots or AI for personal finance advice.

Even ChatGPT itself cautions that it should not be relied upon for professional financial advice.

"AI models can be brilliant," said Dan Moczulski, UK managing director at eToro, which has 30 million users. "The risk comes when people treat generic models like ChatGPT or Gemini as crystal balls." He recommended using AI platforms specifically trained on financial data rather than general-purpose models that "can misquote figures and dates" or "overly rely on past price action."

Finder put ChatGPT to the test in March 2023, asking it to assemble a portfolio of 38 stocks based on debt levels, growth, and competitive advantages. That basket—including Nvidia, Amazon, Procter & Gamble, and Walmart—has surged nearly 55 percent since, outperforming the UK's 10 most popular funds by almost 19 percentage points.

But stock-picking through AI is far from foolproof. Investors must frame their prompts carefully. Leung, for example, asks the chatbot to "assume you're a short analyst" or to use "only credible sources, such as SEC filings."

And risks remain high. Analysts worry that retail investors dazzled by strong recent returns could be left unprepared for downturns. "If people get comfortable investing using AI and they're making money, they may not be able to manage in a crisis or downturn," Leung said.

The STOXX 600 is up nearly 10 percent this year, while the S&P 500 has gained 13 percent after a 23 percent surge in 2023, strong backdrops that may flatter AI-driven strategies.