Should You Trust ChatGPT With Your Money?

Summary

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WSJ What’s News: “Should You Trust ChatGPT With Your Money?”

Date: May 7, 2026
Host: Luke Vargas, The Wall Street Journal
Featured Reporter: Gunjan Banerjee
Theme:
Exploring whether ChatGPT and similar AI tools can effectively manage investment portfolios: how they perform compared to human advisors, the pitfalls, and how real investors are already integrating these tools into their financial decision-making.

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Episode Overview

This episode centers on the increasing intersection of artificial intelligence and personal finance. With the meteoric advance of AI tools like ChatGPT, host Luke Vargas and Money JournaI reporter Gunjan Banerjee dig into a real-life experiment: What happens when you ask ChatGPT to manage a $1 million portfolio, respond to market events, and offer investment advice? Financial advisors weigh in, and new insights emerge about the real current capabilities and risks of AI-driven investment assistance.

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Key Discussion Points & Insights

1. The AI Investment Experiment: Setting Up the Test (07:23–07:58)

• Gunjan Banerjee describes how she set up a long-term experiment by prompting ChatGPT to act as her “fiduciary advisor,” giving it specifics like her age, risk tolerance, investment horizon, the amount to invest ($1 million), and that the account is taxable.
• She “peppered” ChatGPT with ongoing questions involving major market events, including the government shutdown, Trump’s trade war, and the recent war with Iran.

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2. AI's Stock-Picking & Portfolio Decisions (08:01–08:47)

• ChatGPT responded to events proactively, recommending portfolio adjustments during scenarios like the trade war.
• Performance: When ChatGPT chose stocks to weather the trade war, its custom basket outperformed the S&P 500 for a period. As of the latest check-in, however, it had risen 5–6% since mid-October, underperforming the S&P 500’s 8–9% for the same period.
  • Advisor Input: “This is not a situation in which you should be making too many shifts to your portfolio. The best thing to do is...wait it out and don't do anything.” — Gunjan Banerjee quoting advisors (08:47)

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3. Big-Picture Portfolio Construction (08:51–09:16)

• When prompted for a diversified portfolio, ChatGPT advised a broad mix of index funds.
  • “Two financial advisors I spoke with said, hey, this does get a passing grade...not exactly what I would say to investors, but not a bad starting framework in terms of a broad portfolio of diversified index funds.” — Gunjan Banerjee (08:51)

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4. AI as a Tool, Not a Substitute (09:16–10:11)

• Utility: Chatbots can augment research, not replace human judgment.
• Expert Commentary: Gunjan discusses Andrew Lo (Finance Professor, MIT), who envisions a future where AIs could serve as legal fiduciaries but currently urges caution.
  • “He had a really good tidbit of advice for me though, and that was to use AI with a grain of salt.” — Gunjan Banerjee, paraphrasing Prof. Lo (09:32)

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5. Real-World Use & Growing Trust in AI (10:11–10:39)

• Investor surveys (eToro): About 30% of individuals say they’re already using AI for their investment portfolios.
  • “This is happening. People are turning to AI for stock advice...and I think it's only going to keep growing.” — Gunjan Banerjee (10:16)

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6. Pitfalls of Relying on AI: Arithmetic Errors and Bias (10:39–11:43)

• Math Mistakes: ChatGPT made a basic arithmetic error early in the simulated portfolio, leading to misallocated funds (wrong cash percentage).
• “One [thing], definitely double check the math...small numbers can have really big implications on investment returns.” — Gunjan Banerjee (10:43)
• Bias: ChatGPT can have a tendency toward sycophancy, sometimes telling users what they want to hear.
• Tip: Use AI in “thinking mode” and prompt for candid responses, not default advice.

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Notable Quotes & Memorable Moments

• “Two financial advisors I spoke with said, hey, this does get a passing grade...not exactly what I would say to investors, but not a bad starting framework in terms of a broad portfolio of diversified index funds.”
  — Gunjan Banerjee (08:51)
• “He [Prof. Lo] even said that one day he thinks these models could serve as fiduciaries. That's really important...But he had a really good tidbit of advice for me though, and that was to use AI with a grain of salt.”
  — Gunjan Banerjee, paraphrasing Prof. Andrew Lo (09:32)
• “ChatGPT made a math error very early on in my process that led me to kind of misallocate funds in this made-up scenario.”
  — Gunjan Banerjee (10:43)

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Important Segment Timestamps

• [07:23] Gunjan sets up the ChatGPT investment experiment
• [08:01] ChatGPT’s response to market events and stock picking
• [08:51] Financial advisors assess ChatGPT’s diversified portfolio
• [09:32] MIT Prof. Andrew Lo opines on AI as a future fiduciary
• [10:11] Everyday investors’ growing use of AI tools
• [10:43] Major pitfalls: AI mathematical errors and sycophancy

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Tone & Language

The episode maintains a conversational, slightly skeptical, but open-minded tone. Both Daniel Bach and Gunjan Banerjee are frank about the tool’s limitations and its current suitability as a supplement to, not a replacement for, financial advisors. The reporting balances curiosity about AI’s promise with warnings about real technical and behavioral risks.

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Conclusion

Bottom Line:
AI tools like ChatGPT can assist with portfolio research and diversification strategies, but they're far from foolproof when it comes to nuanced, context-driven decision-making and, most crucially, basic arithmetic accuracy. Investors are experimenting, but must double-check mathematics, be wary of biases, and retain human judgment—using AI as a “tool in your arsenal,” not the sole captain of your financial ship.

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Transcript

[IBM Executive]

The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM,

[Luke Vargas]

US Airlines deliver a warning to Washington that already high airfares will surge if the war in Iran doesn't end soon. Plus, a new rush into AI stocks pushes markets in the US And Asia to fresh records. And we'll look at what happens when ChatGPT manages your stock portfolio.

[Gunjan Banerjee]

Two financial advisors I spoke with said, hey, this does get a passing grade. You know, this isn't exactly what I would say to investors, but this is not a bad starting framework in terms of a broad portfolio of diversified index funds.

[Luke Vargas]

It's Thursday, May 7th. I'm Luke Vargas for the Wall Street Journal, and here is the AM Edition of what's news, the top headlines and business stories moving YOUR world. Today, we are exclusively reporting that a spike in fuel prices is sparking concern among President Trump's advisers. More than 8 in 10Americans say that struggles at the gas pump are putting strain on their finances, according to a new poll by NPR, PBS and MERI. With 63% of Americans putting a great deal or a good amount of blame on Trump for the increase in gas prices. Well, the surge in fuel costs is hurting air travel, too, with former New Hampshire Governor Chris Sununu, who leads the industry group Airlines for America, among those who's warned Trump officials about rising airfares. Here he was on Fox Business Varney and Company yesterday.

[Chris Sununu]

Jet fuel has more than doubled in price, right? And it stayed up there. Now the airlines themselves are eating most of that cost. They will lose 10 to $12 billion this here because they're eating most of it.

[Luke Vargas]

US domestic ticket prices surged 20% in March, and we understand that Sununu has argued that the war must come to a close soon or things will get worse.

[Chris Sununu]

Now, again, if we can get the straight open, it's all about the Strait of Hormuz. If that opens up, you'll see that tick down. But it is a supply chain issue on the fuel side. So it will take a little while, right? They go up fast, they go down slow.

[Luke Vargas]

So what's the jet fuel price outlook? I asked Journal energy markets reporter Rebecca Fungus.

[Rebecca Fungus]

So the first thing to know about refined fuel is that the supply chain is really long. The crude oil sometimes comes from the Middle East Gulf, and the crude oil needs to travel to Asia, which will take a few weeks to be refined there. Then the refined fuel, whether it's jet fuel or gasoline or diesel, will come back to Europe and other global markets. So in short, even if the strait is to completely open tomorrow, the whole process to get the refined fuel back will take a few weeks.

[Luke Vargas]

A Treasury Department spokesman pointed to recent comments from Secretary Scott Besant that the US Economy remains strong despite price increases. A judge has unsealed a purported suicide note from late sex offender Jeffrey Epstein. The handwritten note claims that investigators found nothing and stated it is a treat to be able to choose one's time to say goodbye. The release of the note comes the same day as Commerce Secretary Howard Ludnick told a congressional panel that he had no relationship with Epstein and that a one hour visit to Epstein's island in 2012 was a surprise during a family vacation. While Ludnick has said that he cut ties with Epstein years earlier, unsealed Justice Department files showed continued correspondence. Testimony from billionaires Leon Black and Bill Gates is scheduled for next month. And we're exclusively reporting that Washington and Beijing are weighing formal talks to manage a potential AI arms race, focusing on risks like autonomous military systems and unpredictable models. Treasury Secretary Scott Besant is leading the US Side while the administration waits for China to name a counterpart. Ultimately, President Trump and Xi Jinping will decide if those discussions become part of the agenda for their summit next week. In Markets News Warner Bros. Discovery has posted a heavy first quarter loss due to a $2.8 billion termination fee. It's the charge owed to Netflix after its bid to take over Warner was usurped by Paramount skydance. Warner expects Paramount acquisition to close by the end of the third quarter pending regulatory approval. Longtime British semiconductor designer ARM holdings is doubling its demand forecast for a new line of computer chips just months after it jumped into the AI chip game. ARM now expects $2 billion worth of chip sales through early 2028. The company said it currently lacks supply to meet that demand, but CEO Rene Haas described that as a good problem to have.

[Rene Haas]

We are responding to customer demand in a market and we see this today because we're sold out and we've got people looking for more products. There's demand for these products and at the end of the day customer demand speaks volumes.

[Luke Vargas]

While ARM's shares have retreated after earnings, its majority owner, Japan's SoftBank, is up more than 18% today, lifting the Nikkei to a new record. Credited for the jump is a rise in hopes for US Iran peace talks that triggered a wave of AI stock buying and the flurry of corporate results continues. This morning, oil major Shell reported a more than doubling of its Q1 earnings, but warned of lower production stemming from the conflict in the Middle east and pared back its dividend, sending shares lower. Meanwhile, fighting is likely to increase service disruptions and costs for shipping giant Maersk, but it's yet to show up in its financials. The Danish company is maintaining its yearly guidance, citing strong container demand and rising European defense spending is leading Britain's BAE Systems and Germany's Rheinmetall to dial up their yearly sales forecasts. BAE is tapping into demand for space, missile, air defense and drone systems, while Rheinmetall is seeing interest in its ammunition, naval and vehicles businesses. Coming up what happens when you get a chatbot to trade stocks for you? Our reporter Gunjan Banerjee spent months finding out, and we'll hear what she learned after the break.

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[Luke Vargas]

Artificial intelligence has made incredible advances in the last year or so, with many of us using it to make decisions and organize our lives. But how good is it at investing? Our Money Journal markets reporter Gunjan Banerjee asked ChatGPT to manage a stock portfolio and then asked Real World Financial Advisors to grade that advice. She spoke to our Daniel Bach.

[Daniel Bach]

So Gunjan, first of all, let's get the disclaimer out of the way. We don't advise letting AI make your money decisions, and wealth managers generally say it's a bad idea. That said, tell us about this experiment you set up.

[Gunjan Banerjee]

So a few months ago, I decided to test what it would be like to ask ChatGPT to serve as a fiduciary financial advisor. Basically, I crafted a prompt giving it my age, how much money I had to put to work. I had around a million dollars to invest. I stated what my risk tolerance was, what my goal was, and this would be in a taxable investment account. And then over the course of many months, I kind of peppered it with questions on major market events, everything from the government shutdown to Trump's trade war and then recently the war with Iran.

[Daniel Bach]

And how did it perform picking stocks?

[Gunjan Banerjee]

When I asked ChatGPT, hey, there's a trade war underway, how should I position? It did suggest making several different shifts to my portfolio and then asked it to select some stocks for me that might outperform through the trade war. When I checked in on how that basket was doing, interestingly, it had outperformed the S&P 500 over a period of time. Recently I had a publication, I checked in on it again. The basket has risen around 5,6% since mid October when I first asked it that question. And that underperforms The S&P 500's roughly 8 or 9% gain since then. And you know, what financial advisors told me was like, hey, this is not a situation in which you should be making too many shifts to your portfolio. The best thing to do is was wait it out and don't do anything.

[Daniel Bach]

And so how did it perform in picking other types of assets?

[Gunjan Banerjee]

I will say when I first gave it a big picture overview of me as an investor, my risk tolerance and what I hoped it would achieve, it spat out a broad portfolio of index funds that was pretty diversified. And two financial advisors I spoke with said, hey, this does get a passing grade. You know, this isn't exactly what I would say to investors, but this is not a bad starting framework in terms of a broad portfolio of diversified index funds.

[Daniel Bach]

And what are your takeaways on how to chatbots, then can be best used to sort of augment investment research. Maybe not in the final decision making, but in actually sort of giving you another tool in your arsenal, let's say, if you're researching certain investments.

[Gunjan Banerjee]

I think that's exactly the way to view it, is view it as a tool in your arsenal. I chatted with Andrew Lowe, a professor of finance at the Massachusetts Institute of Technology, and he is really bullish on artificial intelligence and the model's ability to give us investment advice in the future. He even said that one day he thinks these models could serve as fiduciaries. That's really important, right? Because fiduciaries can face legal or monetary consequences if they mislead you or if they give you bad advice. He had a really good tidbit of advice for me though, and that was to use AI with a grain of salt.

[Daniel Bach]

And what are you hearing about how people are actually relying on AI then in their decision making?

[Gunjan Banerjee]

Look, roughly 30% of individual investors surveyed by the brokerage Etoro recently said that they were using AI for their portfolios. This is happening. People are turning to AI for stock advice, for investment advice, and I think it's only going to keep growing. Even after this article was published, I heard from a lot of individual investors who shared how they're using AI in their investment process right now.

[Daniel Bach]

Okay, so people are using it now. What are the pitfalls to be aware of?

[Gunjan Banerjee]

Professor Lowe said this to me and I found this as well, which is surprisingly, a lot of these AI models are not that good at arithmetic. And I actually found that ChatGPT made a math error very early on in my process that led me to kind of misallocate funds. In this made up scenario. I used a stock market simulator to track some of the performance of these trades and moves that ChatGPT was suggesting. And I did find that it initially kind of misallocated how much money I would be leaving in cash. So one definitely double check the math. You know, small numbers can have really big implications on investment returns. So make sure you're doing your due diligence there. I would also advise people to put these models, or at least chatgpt, into thinking mode rather than auto. And then during my experiment, I started putting Chat chatgpt into candid mode. And that can lead it to be slightly less sycophantic, this tendency for some of the models to tell you what you might want to hear.

[Daniel Bach]

That's markets reporter Gunjan Banerjee. Gunjan, thanks for your time.

[Gunjan Banerjee]

Thank you. This has been great.

[Luke Vargas]

And finally, the next time you're flying over the din of the engines, don't be surprised if you hear a warning like this.

[Airline Safety Announcement]

Please remember that the use of power banks, including charging of a power bank, is not permitted on board the aircraft. If you have a power bank with you today, can we ask that you keep this in a seat pocket or on your seat on your person at all times?

[Luke Vargas]

The Journal's Amira McKee reports that a number of carriers have begun cracking down on power banks, which have emerged as the leading cause of cabin fires, with airlines last year reporting nearly two incidents a week involving fire, smoke, or extreme heat. The USB charging bricks might seem benign, but Amira told me that how they're made and how passengers treat them make them a hazard that airlines can't afford to ignore.

[Battery Safety Expert]

All lithium ion batteries have the potential for what's called thermal Runway, which is where they sort of uncontrollably overheat through a chemical reaction and sometimes burst into flames. But portable chargers are especially vulnerable to this because they're small, they have sort of a high wattage usually, and they're often produced really cheaply. There's a lot of sort of stress on the market to produce these products as cheaply as possible. And then also people treat them really badly. Unlike unlike a cell phone, which you might really take care of, these products end up thrown into bags and damage to the device is a catalyst for

[Luke Vargas]

thermal Runway that is not at all the type of Runway that a traveler wants to be hearing about. And that's it for what's news for this Thursday morning. Today's show was produced by Hattie Moyer and Daniel Bach. Our supervising producer is Sandra Kilhoff and I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show. Until then, thanks for listening.

[Morgan Stanley Sponsor Voice]

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