Selecting the best progress inventory is rarely straightforward. Particularly in case you’re a flawed, fallible human being like me.

However what in case your intelligence is all synthetic? Does that offer you an edge? I made a decision to search out out by asking ChatGPT to call the perfect FTSE 100 progress inventory to purchase proper now.

The generative synthetic intelligence chatbot was clearly (and rightly) suspicious of my query. It knowledgeable me: “The ‘best’ growth stock among the FTSE 100 will ultimately depend on your investment criteria, such as your risk tolerance, investment horizon, and sector preferences.”

That is sound recommendation. It makes me marvel which web site ChatGPT has been perusing!

AI loves this high-flying FTSE 100 share

My new chatbot buddy then misunderstood my query by giving me a listing of 5 FTSE 100 progress shares, reasonably than only one. In alphabetical order these have been funds airline easyJet, gold producer Fresnillo, coach retailer JD Sports activities Style, British Airways proprietor Worldwide Consolidated Airways Group and plane engine maker Rolls-Royce Holdings (LSE: RR).

Like every beginner investor ChatGPT has a bias in the direction of previous efficiency, with IAG and Rolls-Royce nearly doubling in worth. But that’s not its solely standards. JD Sports activities truly fell 40% during the last 12 months.

I politely requested my AI bro’ to boil down its option to only one inventory and wasn’t shocked to see it plump for Rolls-Royce. That’s been the UK’s stand-out blue-chip recently. Its shares are up 98% over one 12 months and a staggering 490% over two.

ChatGPT praised the numerous transformation underneath its new management. “Its restructuring efforts, cost-cutting measures, and focus on profitability have reignited investor confidence,” it knowledgeable me.

It additionally highlighted the group’s “dominant position in the aerospace and defence sector, with its jet engine business benefiting from a rebound in global air travel and increased defence spending”. I’ve obtained no beef with that.

It added that Rolls-Royce has overcome years of challenges to ship constant earnings progress, which it expects to proceed.

I’ll keep on with my very own intelligence, thanks

It added a word of warning, warning that the Rolls-Royce share price restoration “depends on sustained improvements in global travel and effective execution of its strategic goals”. It correctly added that the shares “can experience high volatility”.

Sadly, I don’t suppose AI has given me an edge right here. The recommendation is just too normal, and misses one large challenge. Rolls-Royce shares are super-expensive buying and selling at greater than 40 occasions earnings.

I believe its faux mind additionally misses out the human issue. Investor expectations at the moment are dizzyingly excessive, leaving the inventory susceptible to the slightest earnings miss.

ChatGPT and I share one elementary flaw. Neither of us can see the longer term. So I’m guessing once I say Rolls-Royce shares will lose their va-va-voom. This was the very best progress inventory on the FTSE 100, however I don’t suppose it’s at present. I’m not promoting my stake but when I had £1k to spare, I’d stick it in JD Sports activities as an alternative.

Personally, I believe that’s at present’s greatest FTSE 100 progress alternative, because it’s due a monster restoration in some unspecified time in the future. However I’m solely human.