What do you think about AI? How about using AI to buy and sell stock? AI is already used a lot for trading stocks, and if you’re hesitant, some say it will be inevitable.
However, New York Attorney General Letitia James recently issued an investor alert warning. She says there are scams luring potential investors with fake videos created with artificial intelligence to show celebrities and business leaders touting fraudulent investment schemes. They are popping up in social media feeds, digital ads and messaging apps. The AG’s office says they’re expected to fuel billions of dollars in fraud every year.
Alexander Harmsen of Portfolio Pilot says giving your money to AI is just as risky as giving it to a human financial advisor. Harsmen says always get a second opinion and do your due diligence when researching tools. Harsmen has some thoughts as well on the scams the AG is warning about.
"I think within the next year or two it'll be very indistinguishable, whether you're talking to a real person or not," Harmsen said. "I think that maybe one of the biggest pieces of advice is that anything that comes inbound to you that you didn't ask for, you should be very skeptical of."
Here are some AI investing red flags:
- Promises of guaranteed returns on your investment
- Demands to invest immediately or you’ll miss out
- Celebrities requesting you invest
- Demands that you send cryptocurrency to a non-bit licensed platform or a private wallet
- Requests to move public conversations to encrypted private messaging platforms
When it comes to setting it all up, here are some other tips. Harsmen says you don’t have to do one or the other. Having a hybrid of investment tools, meaning AI and a person, is a great way to go.
Here are five tips:
- Set your financial goal
- Choose your method
- Select a strategy to help you find the stocks you want
- Find your investing tools
- Start managing your portfolio