Today, we are going to explore a real-time AI use case in the finance domain. Specifically, we will focus on creating an investment portfolio with a specific allocation of our choice.
To begin, I provided my input to ChatGPT, an AI model, and it created a portfolio according to my instructions.
Next, I requested the inclusion of mid-cap and small-cap stocks in my portfolio by revising the allocation. ChatGPT successfully made the necessary adjustments.
However, it added mid-cap and small-cap ETFs instead of the equity I actually needed. I promptly made the correction in my instructions, and ChatGPT updated the portfolio accordingly.
Additionally, I asked for growth-oriented stocks, and ChatGPT did an excellent job in selecting them.
To summarize the portfolio, I initially requested a text summary, but later changed my instruction to a tabular format, which ChatGPT promptly provided.
In the summary, I also added more details such as market beta, expected returns, and risk.
Furthermore, I asked ChatGPT to include non-traditional investments in my portfolio and provide the allocation percentages. ChatGPT successfully added two non-traditional investments to my portfolio.
However, there are some limitations to be aware of. For example, when I asked ChatGPT to create a chart of my asset allocation, it was unable to do so as it is a text-based model. Nevertheless, it provided alternative ways to create a chart using tools like Excel.
I also encountered some errors while using ChatGPT. For instance, when I tried to re-categorize the asset class and move non-traditional investments to a different section, ChatGPT initially selected the wrong assets. However, I quickly rectified the issue by informing ChatGPT of the mistake, and it made the correction.
It is important to note that AI is not a replacement for human beings, and manual review is always necessary. Nonetheless, ChatGPT proved to be a valuable tool in portfolio management.
In conclusion, this real-time AI use case in finance demonstrates how ChatGPT can assist portfolio managers in creating and managing investment portfolios. This is just the beginning, as we can explore more use cases using ChatGPT plugins and advanced prompts. If you found this video helpful, please leave a comment, and stay tuned for more videos in the future. Take care!
