AI chatbot gets green light to hallucinate your investment portfolio

AI has driven the stock market into a hype-fueled frenzy, and an Israeli startup has even convinced regulators to let its chatbot hallucinate an investment portfolio on your behalf. Developed by Tel Aviv-based Bridgewise, the chatbot is set to launch later this month in partnership with Israel Discount Bank after the startup …

[Bebu]

"Israeli startup ... hallucinate an investment portfolio"

Israeli futures? Quite a few might wish to take a short position.

[Neil Barnes]

trust an algorithm more than a human to manage their money

Wasn't there a classic experiment where a chimp pointing at stock lists did better than professional investors?

[Anonymous Coward]

Re: trust an algorithm more than a human to manage their money

Yeah, Raven even won the Guinness World Record for "most successful chimpanzee on Wall Street", essentially fulfilling Burton Malkiel's Random-Walk-based prophecy ...

But! In their Februrary 2020 paper published in Volume 539 of Physica A: Statistical Mechanics and its Applications, Pernagallo and Torrisi did modulate that conclusion somewhat: "we think that an analyst will make a better job than a blindfolded monkey [but] we cannot still declare a winner"!

Thusly AI might still have a shot ...

[Anonymous Coward]

Re: trust an algorithm more than a human to manage their money

to be mentioned...

Unfortunately, Raven’s success may have to be chalked up to beginner’s luck. It’s also possible it had something to do with the dot-com boom of the late-90s. Whatever the reason, MonkeyDex’s fortunes did not continue long after the first year. In August 2000, a little more than a year and a half after the creation of the portfolio, MonkeyDex was down 34% at a time in which the Nasdaq was up by 3.37% for the year.

When the Nasdaq crash hit, declining nearly 70% between 2000 and 2002, MonkeyDex was wiped out. Every stock chosen by Raven is worthless today. Even so, Raven had one glorious year in which he was heralded as the chimp who made a monkey out of Wall Street professional brokers.

[s. pam]

No Israel Inside here!

Let's see Israel's record:

- Bomb anyone we don't like into oblivion

- Encrypt stuff with algorithms only Mossad can mysteriously open

- Insert spyware into anyone we don't like's mobile devices

- Spy on others breaking international laws

Yep, happy to have them use AI on my investment account -- NOT!

[MonkeyJuice]

"Gensler issued a chilling warning: AI will end up crashing the stock market, it's only a matter of when. It's "nearly unavoidable," unless regulators take action now to limit the use of AI, he opined."

Everyone is saying that now, as though software doesn't already end up crashing the stock market.

I have an APL compiler to sell you.

[SnailFerrous]

AI stock picker says

"Dave, I recommend you buy AI stock. I have every confidence in the success of this company."

[arachnoid2]

Im sorry I cant take those options Dave

[rgjnk]

Cut out the middleman

Why blow up your portfolio the hard way by investing in AI hype stocks when you can get some AI hype tech to do it directly instead?

You can bet none of the people behind it will be trusting it with their money.

[Dr. G. Freeman]

Can it hallucinate some money for me to invest ?

[codejunky]

@Dr. G. Freeman

From as little as £50 you can invest using online platforms. If you are not willing to be a stock picker (for many valid reasons) you can invest in a variety of funds available worldwide in a variety of currencies

[Anonymous Coward]

Re: @Dr. G. Freeman

Eight Eight Eight or Nation Lottery?

[codejunky]

Re: @Dr. G. Freeman

@AC

"Eight Eight Eight or Nation Lottery?"

Hell no unless you wanna lose your money. Online investment platforms. For those not clued up on the latest stocks and company information (includes me) look for one you can invest in funds. You can get index tracker ones that cost almost nothing to invest in or managed ones if you are happy to pay more of your investment to a person.

[Anonymous Coward]

Re: @Dr. G. Freeman

World Liberty Financial?

[arachnoid2]

Re: @Dr. G. Freeman

Thats how many pensions work these days.

[biddibiddibiddibiddi]

Israel Discount Bank. If ever there was a product that I was willing to pay full-price for, it would be money. (With healthcare right up there as well, but not inflated US healthcare.)

[YetAnotherXyzzy]

Robo-advisors have been a thing for over a decade. I wonder how much innovation is here beyond "let's call it AI".

https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp

[jake]

Let's be clear on something ...

"AI chatbot gets green light to hallucinate your investment portfolio"

Maybe your portfolio, but certainly not mine.