AI experts have issued a warning that using artificial intelligence to make investment decisions is a 'dangerous path' that more people are taking. They caution that while AI can sound as sophisticated as legendary investor Warren Buffett, its plausible information is not the same as accurate information.
Rohit Parmar-Mistry, a data scientist and founder of AI consultancy Pattrn Data, said: 'Using AI to decide where to invest is a dangerous path to go down, but it's a path more and more people, in my experience, are choosing. It can explain diversification, compare asset allocations, model risk scenarios and stress test ideas, but a person's investment portfolio is never just maths.'
He recommended that AI should be used solely for market research and as a sounding board, not for making actual investment or asset allocation decisions, emphasising there should always be a 'human in the loop' or more specifically an 'adviser in the loop'.
Colette Mason, an AI expert and software engineer at Clever Clogs AI, noted that AI agents are 'exceptionally good at sounding plausible' but warned 'plausible information is not accurate information'. She added: 'While a regulated adviser carries fiduciary duty and professional indemnity insurance, ChatGPT simply carries a disclaimer in tiny print: "AI can make mistakes". It is imperative to remember that using AI is like pulling a fruit-machine lever, and there is a good chance you will be stung by the outcome.'
For most investors, the experts advise that AI is best used to challenge assumptions, improve understanding, and help ask better questions, rather than replace accountable advice outright.
