What is AI hallucination? It’s when artificial intelligence generates false or incorrect information, and it happens often. Out of all online searches studies show that AI hallucination occurs nearly 45% of the time. The sad part is that most people believe everything they see and read on the internet. They view a video and share it to their friends before verifying the source or searching for corroborating evidence. Sharing misinformation, whether by accident or on purpose, perpetuates negativity and creates chaos. Today, you simply cannot trust anything you find online. You must verify it. 

AI hallucination occurs because the technology was designed to predict. If an investor were to rely on AI alone to manage her portfolio, predictions would be made based on past market performances. AI cannot take into consideration the things that can lead to market fluctuations like world events or the U.S. economy when rebalancing a portfolio. It can only consider its programming and past asset performance and searchable trends.

Keep in mind, AI can be a handy tool when used correctly. At Alloy Investment Managementwe may use AI to generate reports, but we have principals and strategies in place to ensure that each client has the portfolio that reflects his or her financial goals. While AI can make us more efficient, it cannot replace our incredible team of financial experts. Their knowledge and expertise and their passion for helping every client realize their dreams are what make us a great company. Technology won’t change that. We won’t let it.