SYDNEY, September 10, 2025 – A growing number of Australian “mum and dad” investors are turning to artificial intelligence tools like ChatGPT for stock market advice, with nearly half now relying on the technology to manage their portfolios. According to a 7NEWS Sydney report released this morning at 9:32 AM AEST, this trend is driven by the widespread availability of AI platforms and a surge in interest following a 15% rise in tech stock values on the ASX earlier this year.
However, financial experts are sounding the alarm over its reliability, citing a 2023 Australian Securities and Investments Commission (ASIC) study that revealed 30% of AI-generated financial advice contained significant errors, ranging from outdated data to misjudged risk assessments. A 2024 peer-reviewed paper from the Journal of Financial Economics further highlighted AI’s limitations, noting its inability to accurately predict rare “black swan” events, such as the sudden 8% NASDAQ drop in August 2025 triggered by an overcorrection in AI stock hype.
The 7NEWS report report, accompanied by a striking image of a plummeting stock graph overlaid with a glowing AI chip, underscores a cautionary narrative amid global market turbulence. This volatility was exacerbated by supply chain disruptions affecting tech giants like Apple, which lost $368 billion in market cap since April due to onshoring mandates and rising Chinese component costs.
In Australia, the AI investment landscape remains niche but is expanding, with companies like WiseTech Global (ASX:WTC) and Xero (ASX:XRO) integrating AI into broader business models, as noted in a July 2025 Investing News Network analysis. Despite the potential, experts such as ASIC representatives from their 2023 Annual Forum warn of risks to market integrity, advocating for stricter oversight.
Local investor groups are now urging a balanced approach, combining AI insights with traditional financial advice from certified advisors to mitigate losses, especially as the ASX sees increased retail trading activity—up 22% year-on-year according to recent data. For now, the debate rages on as Australians navigate this high-tech financial frontier.
