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AI's Long-Term Investment Returns: On Par With Humans, Study Finds
๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Economy & Trade

AI's Long-Term Investment Returns: On Par With Humans, Study Finds

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • A study found that long-term investment strategies using AI trading based on large language models (LLMs) perform similarly to human buy-and-hold strategies.
  • The research indicates that AI's advantage in long-term investment is not significantly different from traditional human methods.
  • This suggests that while AI can automate trading, its long-term profitability in this area does not yet surpass human-led approaches.

A recent study reveals that artificial intelligence, particularly AI trading systems powered by large language models (LLMs), has not demonstrated a significant advantage over traditional human investment strategies in the long term. The research compared LLM-based AI trading with the common human approach of buying and holding assets. The findings indicate that the performance of AI in long-term investments is comparable to that of humans. This suggests that while AI offers automation and potentially new analytical capabilities, its ability to outperform human investors in long-term buy-and-hold scenarios remains unproven. The study implies that the hype around AI's transformative impact on long-term investment may need to be tempered with realistic expectations, as current AI models are not yet consistently outperforming established human methods.

DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.