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Experts Urge Caution About Using ChatGPT To Pick Stocks

3 months ago
An anonymous reader quotes a report from Ars Technica: With AI chatbots growing in popular usage, it was only a matter of time before large numbers of people began applying them to the stock market. In fact, at least 1 in 10 retail investors now consult ChatGPT or other AI chatbots for stock-picking advice, according to a Reuters report published Thursday. Data from a survey by trading platform eToro of 11,000 retail investors worldwide suggests that 13 percent of individual investors already use AI tools like ChatGPT or Google's Gemini for stock selection, while about half say they would consider using these tools for portfolio decisions. Unlike algorithmic trading, where computers automatically execute thousands of trades per second, investors are using ChatGPT as an advisory tool in place of human experts. They type questions, read the AI model's analysis, and then manually decide whether to place trades through their brokers. Reuters spoke with Jeremy Leung, who analyzed companies for investment bank UBS for almost two decades. Leung now relies on ChatGPT for his multi-asset portfolio. "I no longer have the luxury of a Bloomberg terminal, or those kinds of market-data services which are very, very expensive," Leung told Reuters. "Even the simple ChatGPT tool can do a lot and replicate a lot of the workflows that I used to do." Reuters reports that financial products comparison website Finder asked ChatGPT in March 2023 to select stocks from high-quality businesses based on criteria like debt levels and sustained growth. Since then, the resulting 38-stock portfolio has reportedly grown in value nearly 55 percent. That performance beat the average of the UK's 10 most popular funds by almost 19 percentage points. But there's a huge caveat to that kind of AI success story: US stocks sit near record highs, Reuters notes, with the S&P 500 index up 13 percent this year after surging 23 percent last year. Those are conditions that can make almost any stock-picking strategy look smart. Reuters frames the AI trading advice trend as a case of new technology tools "democratizing," or opening up, investment analysis once reserved for institutional investors with expensive data terminals. But experts warn that AI models can confabulate financial data and lack access to real-time market information, making them risky substitutes for professional advice. "AI models can be brilliant," Dan Moczulski, UK managing director at eToro, told Reuters. "The risk comes when people treat generic models like ChatGPT or Gemini as crystal balls." He noted that general AI models "can misquote figures and dates, lean too hard on a pre-established narrative, and overly rely on past price action to attempt to predict the future."

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X2 Elite is Qualcomm’s latest attempt to bring Apple’s M-series magic to the PC

3 months ago
Plus the Snapdragon 8 Elite turns 5

Qualcomm revealed the second act in its bid to overtake Intel and AMD as the leading laptop CPU maker this week with the paper launch of its Snapdragon X2 Elite and Elite Extreme processors. The company seeks to bring the kind of battery life and performance Apple has gotten out of its Arm-based M-series silicon to the Windows market.…

Tobias Mann

Amazon Blamed AI For Layoffs, Then Hired Cheap H1-B Workers, Senators Allege

3 months ago
An anonymous reader shares a report: Senators are demanding answers from Big Tech companies accused of "filing thousands of H-1B skilled labor visa petitions after conducting mass layoffs of American employees." In letters sent to Amazon, Meta, Apple, Google, and Microsoft -- among some of the largest sponsors of H-1B visas -- Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) requested "information and data from each company regarding their recruitment and hiring practices, as well as any variation in salary and benefits between H-1B visa holders and American employees." The letters came shortly after Grassley sent a letter to Department of Homeland Security Secretary Kristi Noem requesting that DHS stop "issuing work authorizations to student visa holders." According to Grassley, "foreign student work authorizations put America at risk of technological and corporate espionage," in addition to allegedly "contributing to rising unemployment rates among college-educated Americans." [...] In the letters to tech firms, senators emphasized that the unemployment rate in America's tech sector is "well above" the overall jobless rate. Amazon perhaps faces the most scrutiny. US Citizenship and Immigration Services data showed that Amazon sponsored the most H-1B visas in 2024 at 14,000, compared to other criticized firms like Microsoft and Meta, which each sponsored 5,000, The Wall Street Journal reported. Senators alleged that Amazon blamed layoffs of "tens of thousands" on the "adoption of generative AI tools," then hired more than 10,000 foreign H-1B employees in 2025.

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Amazon will refund $1.5B to 35M customers allegedly duped into paying for Prime

3 months ago
Former FTC chair Khan not happy her legal wrath ended in settlement worth just 14% of Amazon's quarterly net

Amazon has settled the Federal Trade Commission's case against it for making it too hard to quit Prime, and while it naturally didn't admit to any wrongdoing, it's still going to pay out one of the largest settlements in FTC history to make the matter go away. …

Brandon Vigliarolo

Microsoft Disables Some Cloud Services Used by Israel's Defense Ministry

3 months ago
Microsoft has disabled the Israeli Defense Ministry's access to certain services and subscriptions, after finding evidence that the ministry used the tech company's cloud services to surveil Gaza citizens. WSJ adds: The software company made the move after an internal investigation indicated Israel's Defense Ministry used Microsoft's Azure cloud services for surveillance, according to a person familiar with the matter. The company probe is ongoing. "As employees, we all have a shared interest in privacy protection, given the business value it creates by ensuring our customers can rely on our services with rock solid trust," Microsoft President Brad Smith said in a blog post Thursday on Microsoft's company website. Smith said Microsoft's investigation was guided by the company's "longstanding protection of privacy as a fundamental right." Microsoft opened the probe after the Guardian, the British news organization, reported in August that Israel used Azure to store data on Gaza civilians and surveil them. The issue has been the source of protests at the company.

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