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For a few of us, ChatGPT has already change into a vital instrument for navigating day by day life. However how useful is it when making an attempt to slender down the perfect FTSE shares to ponder shopping for for 2026?
I ran a bit experiment to seek out out.
The bot’s prime 5
The AI bot’s response was a smattering of the UK’s largest and best-known corporations:
- AstraZeneca
- Nationwide Grid
- Barclays
- Aviva
- Rolls-Royce
Every of the above has loved glorious good points in 2025. Even the ‘worst’ performer — energy supplier Nationwide Grid — nonetheless rewarded holders with a 19% achieve (as I sort on 30 December). That’s on par with the index itself.
And let’s not overlook that all the above can have additionally distributed dividends over this era.
FTSE shining star
The inclusion of Rolls-Royce wasn’t precisely shocking. Buyers loved one other marvellous yr with the share value nearly doubling.
Even so, this has left the inventory at a punchy valuation of 35 occasions forecast FY26 earnings, implying that a whole lot of excellent news is already priced in. A ceasefire in Ukraine may see short-term merchants soar ship.
So, is that this the place the music stops?
Presumably not. There’s nonetheless quite a bit to love right here. Demand for air journey continues to be strong, boosting gross sales of engines (and the profitable upkeep contracts that include them). No matter what occurs subsequent in Jap Europe, geopolitical jitters and better defence spending by nations received’t go away in a single day both.
Oh, and the steadiness sheet appears an terrible lot extra strong than it as soon as did.
Put merely, a inventory can preserve rising even when it already appears costly.
Not so quick
However as attention-grabbing as ChatGPT’s choice is, there are some things that hassle me.
The bot solely went for corporations from the FTSE 100. That’s not improper in itself. However it does imply that a lot of different high-quality companies from decrease down the FTSE meals chain have been ignored. They usually may take pleasure in sensible/higher good points subsequent yr given adequate boosts.
Second, Barclays and Aviva each sit within the Financials sector. Positive, share costs may fall en masse within the occasion of an financial disaster. However spreading threat across the market is smart. So, there could possibly be extra diversification right here.
Final, there have been no turnaround or contrarian performs. In different phrases, the bot appeared drawn to shares displaying optimistic momentum. And but it’s typically the case that probably the most hated in a single yr are most in demand the subsequent.
Warning suggested
To be honest, ChatGPT is as handicapped as we’re with regards to inventory selecting. Nobody really is aware of what is going to occur subsequent yr. Curiously, it’s the long-term outlook we might be extra assured about.
I additionally solely requested for 5 recommendations. Realistically, an investor could be courageous to limit their portfolio to such a quantity, particularly if producing passive revenue — which may by no means be assured — had been the purpose.
However these caveats (and my earlier considerations) are precisely why I feel ChatGPT must be used with warning (if in any respect). At greatest, the bot may get fortunate. At worst, it may trigger monetary ache, particularly because it has no concept how the particular person prompting it’d behave within the occasion of a market crash.
No matter occurs in 2026, I received’t be delegating necessary selections to AI.
