From News Headlines to Profits: Can Robots Pick Stocks Better Than People?

By Kelvin Efe-Khaese PNS June 08, 2025

Key Takeaways

AI models like ChatGPT, DeepSeek, and Grok can pick stocks as well as, or even better than, many human analysts.
Professor Alejandro Lopez-Lira’s experiments show these AI tools can turn news headlines into profitable trades.
ChatGPT, in particular, has delivered huge returns in academic tests, sometimes beating the market by a wide margin.
Even with real money, AI still needs a human helper to feed it the right information.
The future of investing might see more and more tasks handled by smart machines.

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The AI Stock-Picking Revolution: Is AI About to Steal Your Stockbroker’s Job? The Shocking Truth Behind ChatGPT, DeepSeek, and Grok

Imagine a world where robots help you pick the best stocks. That world is here. Professor Alejandro Lopez-Lira, a finance expert at the University of Florida, has spent years testing if artificial intelligence can outsmart Wall Street. He uses AI tools like ChatGPT, DeepSeek, and Grok to see if they can pick winning stocks just by reading the news.

At first, Lopez-Lira gave these AI models a simple job. He asked them to read news headlines about companies and decide if the news was good or bad. If the news was good, the AI would pick the stock. If the news was bad, the AI would bet against it. The results were amazing. In one test, ChatGPT turned a small amount of money into more than five times its value, just by making these choices every day.

This was only in a computer simulation. No real money changed hands. But the results were clear. The AI could beat the market, especially when it came to smaller companies and negative news. The AI was not perfect. It made some mistakes. But it never did anything really silly or dangerous. It just followed the rules and made smart choices most of the time.

How the AI Stock-Picking Tests Work—Meet the AI Stock Pickers: Why Wall Street Should Watch Its Back

Lopez-Lira’s experiments are not just about reading headlines. He gives the AI lots of information to work with. He uses computer programs to collect news about companies, the economy, and even world events. The AI then scores each company from 1 to 100, with higher scores meaning better investments, as reported by Morning Star.

The AI picks a mix of stocks and other investments, like funds that track the whole market or certain industries. At first, Lopez-Lira told the AI how many of each to pick. Later, he let the AI decide for itself. The AI could even pick different types of investments, like bonds or commodities, as long as it did not use risky tricks.

All three AI models—ChatGPT, DeepSeek, and Grok—get the same information. Sometimes, one model is used to summarize the risks or score the companies. But they all work with the same facts.

In real life, these AI tools still need a human to help. The AI does not always have the latest news or prices. It can sometimes make up facts or get things wrong. That is why a person must check the information and make sure the AI is on the right track.

Story—The Day AI Beat the Market: How AI Models Like ChatGPT Are Overcoming the Market

Imagine you are a student in a big university. Your professor tells you about a new project. He wants to see if a computer can pick stocks better than people. You watch as he feeds thousands of news headlines into a machine. The machine reads each one and decides if it is good or bad for a company.

Every day, the machine picks new stocks to buy or sell. Sometimes, it sits out if the news is unclear. The results start to pile up. The machine is making money, even when the market is down. You see charts and graphs that show the machine beating the market by a huge margin.

Your professor is excited. He starts to wonder if this machine could one day do the job of a stockbroker. He thinks about all the tasks analysts do every day. He realizes that most of them could be done by a smart computer.

But he also knows there are limits. The machine cannot meet people in person or have a real conversation. It cannot see the world with its own eyes. Still, for most jobs that involve reading, thinking, and making choices, the machine is already good enough.

What Makes AI Stock Pickers Special?

AI stock pickers like ChatGPT, DeepSeek, and Grok have a few big advantages. They can read and understand lots of information very fast. They do not get tired or emotional. They follow rules and make choices based on facts, not feelings.

In tests, these AI tools have beaten older methods and even some professional investors. They are especially good at spotting trends in the news and reacting quickly. This means they can find opportunities that others might miss.

But they are not perfect. They can make mistakes. They sometimes need help from people to get the right information. And they cannot do everything a human can do, like meet with clients or give personal advice.

Why Should You Care?

If you are interested in investing, business, or technology, this is big news. AI is changing the way people invest. It is making it easier for anyone to get good advice and make smart choices. It is also making life harder for traditional stockbrokers and analysts.

The rise of AI in finance is not just a trend. It is a revolution. It is changing the rules of the game and opening up new possibilities for everyone.

How Can You Use This Information?

You do not have to be a finance expert to benefit from AI stock pickers. There are apps and tools that let you try them out for yourself. For example, the Autopilot investment app uses AI to manage your money and help you reach your goals. You can connect your bank or brokerage account and let the AI do the work for you.

This does not mean you should trust AI blindly. Always check the facts and make sure you understand the risks. But it does mean you have more options than ever before.

Call to Action

Ready to see what AI can do for your money? Try an AI-powered investment app like Autopilot. Let the machine help you make smart choices and reach your goals faster. You might be surprised by the results.

Never miss a story. Stick around—follow this blog—<<Through Its Sidebar—for more stories and keep up on the latest updates.

Bonus Tip

Even the best AI needs a human touch. Always double-check the information and make sure you understand the risks before you invest.

FAQs

Q: Can AI really pick stocks better than people?
A: In many tests, AI like ChatGPT has beaten the market and even some professional investors. But it is not perfect and still needs help from people.

Q: How does AI pick stocks?
A: AI reads news, looks at company data, and scores each company based on how good an investment it thinks it is. It then picks the best ones to buy or sell.

Q: Do I need to be an expert to use AI for investing?
A: No. There are apps and tools that make it easy for anyone to try AI investing. Just make sure you understand the risks and check the facts.

Q: Will AI replace stockbrokers?
A: AI is already doing many of the jobs that analysts and stockbrokers do. But it cannot replace everything, like meeting with clients or giving personal advice.

Q: Is AI investing safe?
A: Like all investing, there are risks. AI can make mistakes and sometimes needs help from people. Always do your own research and understand the risks before you invest.