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For a few of us, ChatGPT has already turn out to be a vital software for navigating day by day life. However how useful is it when making an attempt to slim down the perfect FTSE shares to ponder shopping for for 2026?
I ran a bit experiment to search out out.
The bot’s high 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 positive factors 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 neglect that the entire above can have additionally distributed dividends over this era.
FTSE shining star
The inclusion of Rolls-Royce wasn’t precisely shocking. Traders loved one other marvellous yr with the share worth nearly doubling.
Even so, this has left the inventory at a punchy valuation of 35 instances forecast FY26 earnings, implying that a number of excellent news is already priced in. A ceasefire in Ukraine may see short-term merchants leap ship.
So, is that this the place the music stops?
Probably not. There’s nonetheless lots 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 Japanese Europe, geopolitical jitters and better defence spending by nations received’t go away in a single day both.
Oh, and the steadiness sheet seems to be an terrible lot extra sturdy than it as soon as did.
Put merely, a inventory can hold rising even when it already seems to be costly.
Not so quick
However as fascinating as ChatGPT’s choice is, there are some things that bother me.
The bot solely went for corporations from the FTSE 100. That’s not flawed in itself. But it surely does imply that numerous different high-quality companies from decrease down the FTSE meals chain have been ignored. They usually may get pleasure from good/higher positive factors subsequent yr given adequate boosts.
Second, Barclays and Aviva each sit within the Financials sector. Certain, share costs may fall en masse within the occasion of an financial disaster. However spreading danger across the market is sensible. 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 constructive momentum. And but it’s usually the case that essentially the most hated in a single yr are most in demand the following.
Warning suggested
To be truthful, ChatGPT is as handicapped as we’re relating to inventory selecting. Nobody actually is aware of what is going to occur subsequent yr. Curiously, it’s the long-term outlook we could be extra assured about.
I additionally solely requested for 5 strategies. Realistically, an investor can be courageous to limit their portfolio to such a quantity, particularly if producing passive earnings — which might by no means be assured — had been the purpose.
However these caveats (and my earlier considerations) are precisely why I feel ChatGPT needs to be used with warning (if in any respect). At finest, the bot may get fortunate. At worst, it may trigger monetary ache, particularly because it has no thought 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 choices to AI.
