While AI services can be useful, you should be cautious about seeking their advice on your financial journey.
Is AI advice good for investing?
The use and impact of artificial intelligence services, referred to as AI, is increasing in all sectors. Innovative AI-based services are also being introduced in the financial sector.
Furthermore, just as many people are turning to AI chatbots, including ChatGPD, to get easy answers in many fields, it is also possible to see that these services are also being used to get financial advice. In particular, many of the modern younger generation are seeking AI advice in financial planning and other areas.
Is AI investing risky
While there is nothing wrong with getting financial planning information from AI chatbots, financial experts say it is not right to blindly follow AI advice. More importantly, they say, one should be cautious about making investment decisions based on AI advice.
When it comes to financial guidance, it can be easier to ask a chatbot for answers. Rather than having to sift through financial books and websites, the direct answers that chatbots provide seem more convenient.
However, it is important to understand that the answers given by chatbots are general and that the needs of specific investors vary.
For example, when asked how to double an investment in five years, ChatGPD advised investing 60 percent in mutual funds and 40 percent in direct stocks, according to a business daily analysis article on the use of AI.
However, the person who invested in stocks after following this advice has suffered a loss. Although chatbots can analyze information and provide immediate answers, they do not take into account the financial situation and personal aspects of investors like financial advisors.
When financial advisors provide investment advice, they ask a number of supporting questions to understand the expectations and financial situation of investors and guide them.
The importance of financial education?
To use it, it does not mean that you should not use A. I. services for financial matters. You should know why and how. It is also necessary to have financial literacy to evaluate the guidance provided by chatbots. Chatbots can be used to get basic information.
However, the users themselves should make investment decisions based on them. If you do not have time to read various articles, knowing their essence through chatbots will save time.
Similarly, an understanding of how chatbots work is also required. You should know how to frame questions in a specific manner to get the right answers.
The ability to refine answers through follow-up questions is also necessary. A. I. services can also be used for activities such as following up on information related to stocks and providing reminders regarding investment installments.
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