Part 5/10:
Cost-Effectiveness: The operational costs are minimal compared to traditional financial advisors, making services more affordable.
Comprehensive Data Access: With appropriate prompts, AI can analyze virtually all available news and data sources, improving predictive accuracy.
Democratization of Wealth: By spreading financial wisdom widely, AI helps bridge the wealth gap, empowering average investors with advanced tools that were once exclusive to professionals.
Challenges and Risks
Despite its strengths, AI in finance isn't without drawbacks:
- Hallucinations and Erroneous Outputs: AI models sometimes produce plausible yet inaccurate information, or "hallucinations," which can mislead investors.