We Are Not the Same: The Danger of Using General Purpose AI for Investing
- johnchapman73
- Aug 18
- 2 min read
Updated: Aug 18
Would you trust a Financial Advisor who was hallucinating? What about an AI tool that does the same?
As an investor, where do you go if you're looking for a stock tip or a new market trend? If it's ChatGPT or some other general AI tool, hat's off, you're braver than most.
General purpose AI is fantastic at brainstorming and creative writing. They can write great short stories and powerful marketing copy. However, they fall seriously short when it comes to your money and how you put it to work. These models generate text by predicting the next word in a sentence based on patterns from vast amounts of data. Not by careful analysis or by verifying the truth. It's similar to taking a test, but rather than answering the question based on your knowledge of the material, your answer just reflects what fits best relative to your earlier responses!
Example: What ChatGPT might say when asked about investing in Apple:?
ChatGPT: "Apple has demonstrated consistent growth over the years and is a leader in consumer technology. However, its stock price may fluctuate. Consider your risk tolerance and diversification when investing."
That sounds reasonable, right? Well, here's where the danger lies:
Outdated Data: ChatGPT lacks Apple's live stock data or news, offering only a snapshot in time
Analytical Framework: Any analysis is a textual prediction, not a thorough examination of the company's underlying fundamentals or technical position in the stock market
No Transparency: It's a black box you can't audit, nor fully trust
Lack of Rigor: Words like volatile don't fully capture the risk of potentially losing 20-30% in a downturn
So, would you really trust general AI with your money?
For a trustworthy, investment-algorithm backed, AI investing experience, the choice is clear. KAI.
