Three Ways AI Can Mislead You in Investment Information

19.03.2025

Investors and those interested in economic trends often rely on data for decision-making. The growing integration of artificial intelligence (AI) into software, browsers, and operating systems seems like a helpful advancement. However, AI-generated investment information can sometimes be inaccurate, leading to significant financial misjudgments.

Not all AI functions the same way. While AI has existed since the 1950s and has been embedded in tools like spellcheck and pattern recognition software, today’s generative AI—such as ChatGPT—operates by analyzing vast datasets and predicting likely responses. Despite its sophistication, generative AI can create misleading outputs, including fabricated financial data, incorrect statistics, and even non-existent research citations.

A real-world example highlights this issue. When searching for the federal funds rate on March 18, 2025, an AI-generated summary provided conflicting numbers, with incorrect ranges that did not align with official Federal Reserve data. Similarly, an inquiry about the 10-year Treasury Note yield returned an outdated figure, slightly off from the actual rate but significant enough to impact bond trading decisions. Even a simple stock price check showed discrepancies in Tesla’s opening value across different sources.

These inconsistencies raise concerns about the reliability of AI-generated financial information. Market data is highly time-sensitive, and even small inaccuracies can lead to flawed investment strategies. The sources AI tools use, their update frequency, and potential errors in pattern recognition all contribute to these problems.

While AI may offer promising applications for portfolio management and financial analysis, it is crucial for investors to verify AI-generated data with trusted sources. Relying blindly on AI for investment decisions can introduce unnecessary risks, reinforcing the need for human oversight in financial analysis.