31% of investors are OK with using artificial intelligence as their advisor
Nearly 1 in 3 investors would use artificial intelligence as their financial advisor, a new survey suggests — and that has the potential to lead to flawed advice, experts said.
Specifically, 31% of investors queried would be comfortable implementing financial advice from a generative AI program without first verifying those recommendations with another source, according to a poll by the Certified Financial Planner Board of Standards, the body that governs the CFP designation for financial advisors.
«It is a bit concerning,» said Kevin Keller, CEO of the CFP Board.
In simple terms, AI is technology that aims to simulate human intelligence. Generative AI uses algorithms to create new content like essays, song lyrics, art, photography and computer code — or, in this case, financial advice.
ChatGPT, a program that went viral after being debuted to the public late last year, is one example of generative AI.
More from Personal Finance:
Interest rates, inflation push Gen Z to trade on emotion
5 cities with the highest property tax rates
81% of full-time workers want a 4-day work week
Would-be financial-advice recipients can use such programs to ask financial questions or prompts.
Consider this sample prompt from Keller: «Create an asset allocation for a 62-year-old male investor who is moderately risk tolerant.»
The algorithms that underpin generative AI compile data from sources like the internet to develop responses, and those data sources may not be reliable. The quality of the results depend on the quality of the model, according to McKinsey & Co.
«The outputs aren't always accurate — or appropriate,» the consulting firm wrote of generative AI.
«For its part, ChatGPT seems to have trouble counting, or solving basic
Read more on cnbc.com
