"AI always has the answer!” Since the emergence of chatbots, artificial intelligence (AI) has become a popular resource for seeking information and solutions. While AI is convenient and user-friendly, it is essential to critically evaluate and verify the response it provides, especially when it comes to investment and money management.
AI can answer a wide range of questions, much like an encyclopaedia. However, we should not assume that all the information in this “encyclopaedia” is accurate. Indeed, it is becoming more and more clear that AI may offer biased or misleading answers. Investors should pay attention to the following when using AI:
- The “knowledge” of AI comes from historical data and information. If the training resources are incorrect, incomplete or outdated, an AI model may produce inaccurate responses.
- AI may give unfair and biased responses, if its model is designed with inherent biases, or if the training data lacks diversity and representativeness.
- Hallucination is a distinct issue associated with AI. The replies that appear reasonable may be fabricated by the model without any factual basis. This issue may arise from various factors, such as insufficient training data, and the inherent complexity of human language.
- AI models may lose accuracy and relevancy over time, a challenge referred to as knowledge drift.
Today, many financial institutions are adopting AI to offer investors with more AI-generated investment information, data, market insights and commentaries. Given the mixed quality of such content, investors should always verify, fact-check, and refine their queries to enhance the accuracy.
When it comes to money management and investment, investors should exercise caution and avoid blindly trusting any information, whether provided by a real person or AI.
7 November 2025
