ChatGPT is all the rage today. The artificial intelligence-powered chatbot created by Microsoft-backed OpenAI generates humanlike answers to simple prompts within seconds and has already taken several industries by storm.
However, its surging popularity in the finance industry has raised the question of whether generative AI could replace human financial advisers.
ChatGPT offers retail investors access to the technology, thereby promoting financial inclusion.
But it has prompted a polarising discussion on the technology’s strengths, weaknesses and potential risks.
“I have used ChatGPT and AutoGPT to seek investment advice,” says Smita Malwe, a public relations and communication consultant in Dubai.
“However, ChatGPT responded that it cannot provide real-time information or specific investment recommendations and can instead provide general information, such as how I could invest in index funds, dividend-focused funds or exchange-traded funds if I am looking for minimum 5 per cent to 8 per cent return on my investment,” she adds.
“Now, this response is too generic and only an expert human adviser can evaluate the specific goals, interpret and analyse the real scenarios and suggest the specific funds or modes of investment.”
An individual’s financial situation may also change, requiring adjustments to the original investment plan, Ms Malwe says.
In such a scenario, she would prefer relying on a human who is an expert in the domain to keep her informed and alter the plan if needed, rather than a virtual financial adviser or an AI bot.
Generative AI can produce various kinds of data, including audio, code, images, text, simulations, 3D objects and videos. While it takes cues from existing data, it is also capable of generating new and unexpected outputs, according to GenerativeAI.net.
The global generative AI market is expected to reach $188.62 billion by 2032 – growing at an annual rate of more than 36 per cent from $8.65 billion last year, according to The Brainy Insights.
ChatGPT was launched in November by OpenAI – the world’s most valuable generative AI start-up – and quickly gained popularity.
In January, Microsoft announced the third phase of its long-term partnership with OpenAI through a new multiyear, multibillion-dollar investment, worth a reported $10 billion.
While AI can provide strong recommendations, it should be seen as a tool in an investor’s toolbox rather than a stand-alone decision-maker, according to Sharib Suhail, a media officer for a business set-up company in Dubai.
He has used ChatGPT for investment advice and another generative AI tool, Finchat, to invest with robo-adviser Sarwa.
“Investment decisions are multifaceted and often require a nuanced understanding of complex data and softer aspects such as sociopolitical implications, ethical considerations and individual risk tolerance. In other words, AI should robustly complement human judgment rather than [be] a replacement,” he says.
“As we move ahead in this exciting era of technology, it will be essential to balance leveraging AI capabilities and maintaining human oversight, ensuring that our financial decisions are both data-driven and deeply human.”
AI can offer investment ideas, but not be used for investment decisions, according to Adi Sinha, founder of OpenTap, a growth management consulting company, and a financial literacy campaigner.
“Contrary to popular belief, investing is not what you do because of what you hear online, or what your parents or friends say,” he says.
“Investing is extremely personal to you as an individual and is based on things like risk tolerance, time horizon and investment goals. AI is nowhere close to summarising your entire sense of being into a few lines of code, and as such should absolutely not be allowed to make investment decisions for you.”
Leveraging the power of AI, Nemo, a recently-launched investment brand in the UAE, has rolled out NemoAI, a GPT-powered financial assistant to help new investors conquer their fears and develop market knowledge.
“GPT, the technology that underpins AI, has an ability to understand the intent of your questions and specifically answer them. It’s not like traditional chatbots, which sometimes struggle to understand what you’re asking,” says Nick Scott, head of product development at Nemo.
“It’s similar to having a conversation with a human. NemoAI is trained on hundreds of millions of data points and uses that knowledge to write back on almost any topic you ask.”
Nemo.money is a stock investing platform regulated by the Abu Dhabi Global Market, which offers users access to 8,000 equities and ETFs.
Nemo – which stands for “never miss out” on investing opportunities – aims to offer investing ideas and opportunities to users that match their interests, goals and ambitions. It curates equities and other assets into groupings or “Nemes” that reflect contemporary interests and trends.
For instance, the platform curates groups of best dividend-paying stocks, stocks with more volatility, those that perform well when inflation is high or popular stocks that might be considered good investments for novice investors.
NemoAI can handle both general and specific questions about investing, companies and stock performance.
It can explain some basic topics, such as what are dividends, growth stocks, a long-short investing strategy and also tell you about the live stock performance of Tesla, for instance, Mr Scott says.
In a split second, NemoAI can sift through huge amounts of information, financial data, opinions, news and provide a curated summary of why a stock could or could not be a great investment.
“The tool allows people who don’t know too much about finance and investing to increase their knowledge quickly in a way that feels natural,” Mr Scott says.
Both Nemo and NemoAI are free to use. Users can register with their email address and phone number.
The platform, which already has hundreds of users in the UAE, offers stock trading commission-free. The minimum deposit to start trading with Nemo is $3.
NemoAI is a great tool for those who cannot afford a human financial adviser, according to Mr Scott.
“The tool promotes financial inclusion because of its ability to explain complicated topics. Previously, you could only have that type of back and forth conversation if you could afford a financial adviser. But now you can have that conversation with AI,” he says.
“NemoAI isn’t trying to replace or replicate personal financial advisers. It’s not there to make decisions on your behalf. Instead, it’s trying to give balanced responses with education and knowledge so that you can make a decision for yourself.
“Many financial advisers are starting to use GPT themselves to increase their knowledge and do tasks faster. Those that can afford a financial adviser will continue and probably always want that level of human interaction.”
Explaining the difference between NemoAI and a robo-adviser, he says the latter uses a relatively small number of data points to try to match an individual with a pre-defined investment strategy.
But they’re often designed to give advice and try to make decisions on your behalf whereas NemoAI can help users make more informed decisions themselves, Mr Scott says.
Meanwhile, ADGM-regulated hybrid asset manager FinaMaze offers investment advice based on a combination of human experience and machine learning outcomes.
The platform provides algorithm-powered investment solutions across asset classes such as stocks, fixed income, commodities, private equity and the metaverse.
Under the hybrid approach, humans lead the charge at two levels – client relationship management and building strategies and tactical portfolios, according to Mehdi Fichtali, founding partner and chief executive of FinaMaze.
“AI is much better in scouting for different market trends and summarising them for human advisers,” he says.
“It also personalises different portfolios to be aligned with each individual’s risk appetite. The personalisation of strategies requires high computational power and needs 24/7 supervision of risks, given market volatility.
“AI also takes care of automated execution of trades in the market.”
AI is much better in scouting for different market trends and summarising them for human advisers
Mehdi Fichtali,
founding partner and chief executive, FinaMaze
FinaMaze recently created AI characters to deliver financial market news to customers.
The characters will deliver news when it is pertinent and impactful. The frequency of news delivery is twice a month on average, Mr Fichtali says.
Artificial intelligence promotes financial inclusion because of its cost-effectiveness, he adds.
“We can bring private banking grade advice or personalisation to the masses. You no longer need millions of dollars to have a dedicated personal adviser. It can be done by AI at 1,000th of the cost.”
Othmane Mikou, founder of a UAE-based independent consultancy, has been a FinaMaze customer for more than six months.
He has invested in portfolios that offer him exposure to GCC and international markets across asset classes such as commodities, stock markets and fixed income.
“These portfolios incorporate dynamic rebalancing and protective risk controls without any participation from my side,” Mr Mikou says.
“AI-driven hybrid platforms have the potential to disrupt the traditional asset management industry by providing distinctive benefits such as data-driven insights and portfolio optimisation.”
UAE currency: the story behind the money in your pockets
'Midnights'
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
UAE currency: the story behind the money in your pockets
If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
Honeymoonish
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco
Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French
Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian
U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco
LEAGUE CUP QUARTER-FINAL DRAW
Stoke City v Tottenham
Brentford v Newcastle United
Arsenal v Manchester City
Everton v Manchester United
All ties are to be played the week commencing December 21.
Avatar%20(2009)
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Killing of Qassem Suleimani
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
More coverage from the Future Forum
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
AUSTRALIA SQUAD
Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Glenn Maxwell, Ben McDermott, Kane Richardson, Steve Smith, Billy Stanlake, Mitchell Starc, Ashton Turner, Andrew Tye, David Warner, Adam Zampa
UAE currency: the story behind the money in your pockets
RESULT
Bayer Leverkusen 2 Bayern Munich 4
Leverkusen: Alario (9'), Wirtz (89')
Bayern: Coman (27'), Goretzka (42'), Gnabry (45'), Lewandowski (66')
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
Autumn international scores
Saturday, November 24
Italy 3-66 New Zealand
Scotland 14-9 Argentina
England 37-18 Australia
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