As an skilled investor, what I decide for my Shares and Shares ISA is basically dictated by what I already maintain.

For instance, I wouldn’t purchase FTSE 100 defence large BAE Techniques in the present day, although it’s going gangbusters, as a result of I loaded up final yr.

So whereas researching this yr’s inventory picks, I made a decision to name in AI, to ask what I ought to do if I used to be a beginner. I believe fairly just a few ISA buyers are doing that, however I’d urge warning.

Its first decide was Reckitt Benckiser

As ChatGPT admits itself, it’s not a inventory picker. It additionally makes errors. But it surely’s nonetheless enjoyable to mess around with.

I requested it to recommend 5 FTSE 100 shares throughout 5 totally different sectors, providing a combination of dividends and development for the long run.

Its first decide was shopper items and healthcare specialist Reckitt Benckiser (LSE: RKT). ChatGPT notes that it owns well-known manufacturers like Dettol, Nurofen, Durex and End, and advantages from regular demand for hygiene, well being and family merchandise.

“This makes it relatively recession-resistant, while strong pricing power and innovation keep revenues growing,” it stated.

That is true, though it isn’t the total story, which exhibits why it’s important buyers do their very own research. Reckitt shares truly commerce decrease than they did 10 years in the past, because the cost-of-living disaster hit gross sales and the board struggled with technique and supply.

To be honest, ChatGPT did level out that “competition from cheaper own-brand products is another risk, especially if consumer spending tightens.”

The Reckitt share price is up 20% within the final yr although, plus there’s a trailing 3.89% dividend yield. It’s a good portfolio constructing block, however buyers ought to dig deeper than merely asking a robotic.

ChatGPT then goes on identify one inventory I already personal: insurance coverage and asset supervisor Authorized & Common Group, praising its “high and sustainable dividend yield”.

Clearly, I can’t disagree with that, though once more, I’d urge warning as a result of earnings have been bumpy seemingly, and share price development patchy.

My robotic buddy then tipped Rio Tinto, saying the worldwide miner ought to profit from the inexperienced power transition and pay sturdy dividends when commodity costs are excessive.

Rightly, it warns of unstable commodity markets and the Chinese language slowdown. I believe Rio is value contemplating, however solely with a minimal 10-year view, because the close to time period seems bumpy resulting from excessive rates of interest and commerce wars.

First rate unfold of FTSE 100 shares

My subsequent robotic decide is pharmaceutical large AstraZeneca, the largest UK firm of all (the place does ChatGPT get its inspiration from?!)

It’s exhausting to argue in opposition to this one, given stable long-term development and dividends, and development alternatives as humanity will get older and sicker.

I don’t agree with ChatGPT’s closing decide, electrical energy and gasoline transmission large Nationwide Grid. It’s been seen as a rock stable dividend development inventory for years, however because it prepares to take a position £60bn within the inexperienced transition, it’s below extra strain than I like.

UK infrastructure initiatives often run over time and finances, and I wouldn’t be stunned if Nationwide Grid was compelled to repeat final yr’s capital increase.

Different buyers stay optimistic. Investing is a really private factor. Synthetic intelligence is enjoyable, however no substitute for the actual factor.