Snap Released An AI Tool, But Chatbot Does Not Provide Stock Recommendations.

While the company's 2023 Snap Partner Summit was taking place, Snap SNAP –0.54% provided an update on the company's business, along with its new "My AI" feature, which is now available to all users.

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Snapchat's parent company, Snap (ticker: SNAP), has only made its famous chatbot available to its paid subscribers until Wednesday. Snap calls the feature "an experimental, friendly, chatbot that is currently available to all Snapchat users.".

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Trade Algo gave it a try, and reported that Snap's AI is capable of answering trivia questions, or giving advice on what birthday gifts to get for friends. Snapchat received positive feedback on the feature.

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Firstly, I asked the chatbot some basic questions about how it functions, and the AI answered them in a very short amount of time, which allowed us to feel like the conversation was almost natural. My AI was very fast to respond and the conversation was a very pleasant one.

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The bot did not simply respond by saying, “Yes, here are beaches near you.” Instead, I received an answer like this rather than “Yes, I think it would be a great idea to go to the beach today! But make sure you pack sunscreen and plenty of water so you do not dehydrate.”

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It was after several minutes of back and forth that I learned that My AI enjoyed reading "To Kill a Mockingbird" and that it will suggest I show my mother a movie called "Crazy Rich Asians" on Mother's Day, that I decided to ask it some questions about the financial world. There were much fewer enthusiastic responses to the survey.

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The bot told me that when I asked My AI if I should buy Snap's stock, it was not able to give me financial advice, so it advised me to consult a financial advisor instead. The My AI also offered me a number of ways to get financial news information and provided several websites to find it. I requested a question about the state of the stock market and what advice it could offer. My AI told me to check a news app for the latest consumer price index report if I wanted that information.

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According to Snap, their user-facing AI plugin isn't at all like the iOS application itself. During the Snap Partner Summit held on Wednesday, the company reiterated that their AI doesn't provide financial information to their users. The company explained that their algorithm does make errors, so you shouldn't rely on it for advice.

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As the release of Snapchat's My AI to all users comes at a time when major tech companies, including Alphabet GOOGL -0.31% (GOOGL) and Microsoft MSFT +0.03% (MSFT), have been investing in AI chatbots designed for the public. ChatGPT is perhaps the most widely known of these initiatives.

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The company also announced during the Snap Partner Summit held on Wednesday that over three million people subscribed to its Snap+ subscription plan, which costs $3.99 a month. Instagram is normally free to use, so the company claimed that it has been a great success.

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As of Wednesday's close, Snap's stock has dropped 0.5% to $10.98. The stock has jumped 22% right now and is expected to rise another 22% when the company reports its first-quarter earnings on April 27.