Yahoo Finance Sector ETFs to Win/Lose from ChatGPT Frenzy
The hype surrounding ChatGPT has brought about a massive change in the global financial and investment world in the past few months. ChatGPT is an AI-powered chatbot developed by OpenAI, an artificial intelligence research organization.
ChatGPT has gained popularity for its ability to hold natural conversations and provide informative responses on a wide range of topics. The language tool has reached 1.16 billion users within mere five months.
American companies use ChatGPT for varied purposes: 66% for writing code, 58% for creating prose and content, 57% for customer service, and 52% for meeting summaries and other papers, a survey showed, as quoted on Business Today. No wonder, this chatbot has enough power to cause considerable job losses.
Below we highlight a few ETF areas that could gain/lose from this AI mania.
Winners
Artificial Intelligence – AI Powered Equity ETF AIEQ
AI stocks have seen a surge in demand due to the popularity of ChatGPT. Microsoft MSFT is investing billions into OpenAI, the creator of ChatGPT, and launched its new AI-powered Bing search and Edge browser.
Alphabet GOOGL, which has invested heavily in AI and machine learning over the past few years, refining its chatbot competitor BARD. Alibaba, Baidu, Facebook and many other companies are in the race to launch alike, following in the footsteps of ChatGPT's success. This explains why AI stocks will remain in the fine fettle in the days to come.
Cybersecurity – ETFMG Prime Cyber Security ETF HACK
ChatGPT likely to pose a new cybersecurity threat, particularly in the form of AI-generated phishing scams. Cybersecurity leaders need to equip their IT teams with tools to detect AI-generated emails and train employees on cybersecurity prevention skills, while advocating for advanced detection tools and government oversight of AI usage in cybersecurity, per Harvard Business Review.
While ChatGPT's power is available to both good and bad actors, it's essential to prevent ChatGPT-related threats and instruct cybersecurity professionals on how to use it as a tool in their arsenal. As ChatGPT continues to improve, it may become an increasingly prevailing tool for malicious actors. Hence, the spread of AI across the web world should increase demand for cybersecurity.
Losers
EdTech – Global X Education ETF EDUT
Chegg shares slumped massively in recent trading after the online education company said ChatGPT is hurting its business. “In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups,” CEO Dan Rosensweig said during the earnings call Monday evening.
“However, since March we saw a significant spike in student interest in ChatGPT. We now believe it’s having an impact on our new customer growth rate,” as quoted on CNBC. The concern is legitimate, and it is reasonable to anticipate that ChatGPT and similar technologies will continue to adversely affect the Edtech industry.
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ETFMG Prime Cyber Security ETF (HACK): ETF Research Reports
AI Powered Equity ETF (AIEQ): ETF Research Reports
Global X Education ETF (EDUT): ETF Research Reports
