“AI models can be brilliant,” said Dan Mokzulski, the managing director of the UK ETORO. “Risk arises when people relate to common models, such as ChatGPT or Gemini as crystal balls.” He noted that the general models of AI “can incorrect figures and dates incorrectly, lean too much to the previously established narrative and rely overly rely on the past, in order to try to predict the future.”
The dangers of choosing artificial intelligence shares
The use of AI for the trade in shares of the house seems to be the next step in a long series of technological achievements that democratized individual retail investments, for the better or for the worse. Computer trading shares for individuals dates back to 1984, when Charles Schwab Introduced Electronic trading services for customers at a distance. Electronic trade Runned In 1992, by the end of the 1990s, online brothels converted retail investment, reducing the commission from hundreds of dollars for trading to $ 10.
First “Robo-Plos“It appeared after the financial crisis of 2008, which began the growth of automated online services that use algorithms to control and the re -balance based on the purpose of the client. Services such as the best launched in 2010And Wealthfront Followed in 2011Using algorithms for automatic overbound portfolios. By the end of 2015, a robe of almost 100 companies around the world were Management 60 billion dollars In client assets.
The arrival of ChatGPT in November 2022 may have become a new stage when retail investors could directly request AI model to select shares, and not rely on pre -programmed algorithms. But Leung admitted that ChatGPT cannot access data for Paywalls, potentially missed critical tests available through professional services. To get the best results, he creates specific tips, such as “Suppose that you are a short analyst, what is the short thesis for this action?” Or “use only reliable sources, such as SEC applications.”
In addition to the chat bots, the dependence on financial algorithms is growing. According to forecasts, the Robo-Raze market, which includes all companies that provide automated financial consultations from fintech startups to installed banks, by 2029, grows by about 600 percent by 2029.
But since more and more retail investors turn to artificial intelligence tools for investment solutions, these are also potential problems with the expectation of this.
“If it is convenient for people to invest using AI, and they earn money, they may not cope with a crisis or a decline,” Leung warned. Interest goes beyond individual losses regarding whether retail investors who use AI tools understand, or have strategies when markets become bearish.
