Investors flock to ChatGPT as Kospi soars
The Rise of AI in Individual Stock Investing
Individual Investor A has been actively investing since the start of this year by using a unique method involving a "virtual investment board" prompt on ChatGPT. This approach allows the investor to summon AI-generated representations of renowned investors like Warren Buffett, Peter Lynch, and Howard Marks. These AI figures offer insights based on their well-known investment philosophies—value investing, growth stock investing, and market cycle analysis, respectively.
When inputting specific details about a company, such as its stock price, financial status, and recent developments, the AI provides opinions ranging from “buy” to “hold” or “reduce position.” Investor A has shared this prompt on various investment communities, stating that when FOMO (fear of missing out) strikes during rapid market movements, the AI’s advice helps maintain a balanced perspective.
As the Kospi Index recently surpassed the 7,500-point mark for the first time during intraday trading, the number of individual investors turning to generative AI platforms for stock trading has also risen. The goal is to quickly process the overwhelming amount of stock market information and analyze internal and external factors affecting investments.
However, many experts caution that generative AI can produce "hallucinations"—plausible but incorrect responses. As a result, it is often recommended to use AI as a supplementary tool rather than a primary decision-making resource.
AI Recommendations and Market Trends
On March 7th, online stock-related communities were flooded with posts sharing investment advice from AI. Some individuals claimed they had purchased stocks recommended by Gemini or trusted ChatGPT's analysis that the semiconductor sector was promising.
Many investors are now using AI to identify potential beneficiary stocks. With the surge in Samsung Electronics and SK Hynix stock prices driven by the "semiconductor supercycle," users are asking AI about related sectors such as glass substrates, energy, and security. Posts in investment communities mentioned security companies as AI-recommended beneficiary stocks, with one user noting, “When asked Gemini, it pointed out the potential increase in security demand due to the expansion of data centers.”
AI Analyzes Analysts’ Nuances
Investment AI prompts are becoming increasingly sophisticated. Beyond summarizing brokerage target prices or investment opinions, these tools now analyze whether expressions have become more positive or negative compared to previous reports. They also filter stocks of interest based on real-time mentions on social media and online communities.
Investors highlight the speed of AI as its biggest advantage. By eliminating the need to individually search through brokerage reports, YouTube videos, and articles, large volumes of information can be organized efficiently.
Individual Investor B, who uses AI to organize overseas news, said, “It allows securing more information in a shorter time than before, making AI essential for investing.”
The increased volatility in the stock market is another reason for turning to AI. This year, the buy-sell sidecar mechanism in the Kospi market has been triggered 14 times—the highest since the 2008 global financial crisis. The sidecar mechanism halts program trading for five minutes if Kospi 200 futures prices surge or plummet by more than 5% from the previous day's close for one minute.
Search volume supports this trend. According to Naver Data Lab, searches for "AI investment" surged approximately fourfold from early February to early March, immediately after the Middle East war. This period coincided with the Kospi Index plunging over 10%.
AI Can Make Mistakes… Relying Entirely Can Lead to Disaster
Despite its benefits, AI is not infallible. It often provides plausible answers based on incorrect data or presents biased conclusions depending on how questions are framed.
Online communities frequently share testimonials of AI mistakes, such as “AI recommended stocks based on irrelevant financial data” or “I suffered losses after buying more stocks based on Gemini's advice.”
The U.S. Securities and Exchange Commission (SEC) has also listed the risks posed by AI and automated investment tools to investors as one of its "2026 Supervisory Priorities."
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