Artificial intelligence is changing everything—our jobs, our habits, and even how we invest. But can AI actually build a better portfolio than a human investor? I decided to put it to the test.
I turned to ChatGPT, Google Bard, and several AI-powered investing tools to see what kind of portfolio they would build for me based on my risk tolerance, financial goals, and investing philosophy. The results? Some solid picks, a few surprises, and one big lesson about the future of investing.
Step 1: The AI Portfolio Construction Process
First, I gave AI some basic information about my financial situation:
✅ My investment horizon: Long-term (10+ years)
✅ My risk tolerance: Moderate to high
✅ My preference: A mix of growth, dividends, and some diversification
I expected AI to recommend something similar to my current strategy, but instead, it gave me a structured, data-driven approach that made me rethink some of my own biases. Here’s the breakdown of what AI suggested:
📊 The AI-Generated Portfolio:
50% Broad Market ETFs – $VUAG (-1,14 %) , $WEBG (-0,9 %) , and emerging markets for global exposure.
25% Dividend Stocks – High-yield and consistent dividend growers for passive income.
15% Growth Stocks – High-potential companies with strong fundamentals.
10% Alternative Investments – A mix of REITs, bonds, and even crypto $BTC (-0,23 %)
$ETH (-0,34 %) (which I wasn’t expecting!).
At first glance, this portfolio seemed balanced and well-diversified—but was it actually better than what I had built myself?
Step 2: Comparing AI’s Picks to My Own Strategy
I ran some backtests and did a deep dive into AI’s stock picks. A few things stood out:
📈 AI Loves ETFs – Unlike many stock pickers who chase individual companies, AI leaned heavily on ETFs for stability and long-term compounding. Makes sense!
🚀 Aggressive Growth Choices – AI selected some individual growth stocks that I had never even considered, many of them in AI, cloud computing, and biotech. Risky? Yes. But interesting!
💸 Overweight in Tech – Unsurprisingly, AI favored big tech names—perhaps too much. I had to wonder: is AI biased toward companies that are leading AI development? 🤔
🏦 No Bonds, No $GOLD ? – AI completely ignored traditional hedges like bonds or gold. This made me question if it underestimates market downturns.
Step 3: The Big Takeaways
After analyzing AI’s portfolio, here’s what I learned:
✅ AI is great at removing emotions from investing. It doesn’t panic during downturns or chase hype—it simply follows the data.
❌ AI is not perfect. It might over-optimize based on past data and ignore real-world factors like geopolitical risks or economic cycles.
💡 The best approach? A hybrid one. AI is an amazing tool, but human intuition, experience, and common sense are still crucial. I’m now incorporating some of AI’s suggestions into my strategy, but I’m not blindly following it.
Final Question: Would You Trust AI to Manage Your Portfolio?
AI investing is becoming more powerful, but would you let an algorithm handle your entire portfolio without human oversight? Or do you think
AI will never fully replace human investors?
