Artificial intelligence has been revolutionary for many industries. While it has been around for a while, it seems to be a form of technology that has really come into its own in the last couple of years.
Of course, the way it works and its capabilities have made it very useful for many. It has been able to streamline many different tasks. It has helped to reduce the amount of time and waste of resources to complete various tasks, prevent mistakes from happening, and potentially help industry sectors to improve in other areas. Indeed, it can add several billions to a country’s economy in many ways when used correctly.
However, while there have been many significant advantages to have been experienced, AI does come with its potential dangers. Indeed, it’s something that some industries simply cannot rely on due to the nature of the technology that is used.
Investors and gamblers need to be wary of AI
Investing and gambling are two very different activities, although they share many common features. Many will highlight the risk that is associated with both, as many suggest that there is an element of luck involved, despite the amount of strategy or preparedness that can go into both.
Players who enjoy the real money pokies in Australia that are playable know they must be careful when they place their bets. They know that there is no guarantee of winning, with the game being based on chance. It’s strictly meant to be viewed as a form of entertainment. While investing isn’t viewed in the same light regarding why it’s done, it’s an activity that still carries plenty of chances and no guarantees.
Some may look at using AI to help them gain an edge when making predictions and forecasting what may happen. Indeed, it would appear to be a good idea to do so, given the capabilities of the technology. However, it can be the exact opposite.
In regard to investing and gambling, AI can be rather limiting. Although it can be used to try and give an overall picture of something that is happening, it can be based on historical data. This can be an issue when dealing with something as volatile as cryptocurrency and stocks. Many of these assets can often thrive based on confidence, not what has happened during a previous period in history. AI can try and predict what might happen, but it won’t be able to account or explain any sudden movements that can be made.
At the same time, there can be significant data quality issues that are created through the use of AI. As it continues to learn and read from other sources, it may take numbers or information from other sources that aren’t reliable. It may also process information that was put in that was incorrect, or as mentioned above, could be an outlier based on a moment in time that had influenced those records. AI algorithms don’t quite have the capacity to account for things in context. They often see one picture and then generate an outcome that is based on an idealistic viewpoint. From a financial point of view, this is something that can be incredibly dangerous for investors and gamblers.
Ethical concerns can exist with using AI
Many ethical challenges and risks are also exposed when using AI algorithms to plan for financial futures. Cybersecurity can be a huge problem that is encountered due to the vast sets of sensitive data that is used. Hackers may attempt to steal the data used, which could lead to investors finding their portfolios are at risk in more ways than they already are.
At the same time, accountability can become a problem. There can be a lack of it when AI is used, which can be costly for any business involved in gambling or investing. No one may take responsibility for an error that may occur. With AI potentially having a level of bias due to the information that it learns, this can be a huge concern.
Importance of decision-making and critical thinking
As noted, investing and gambling share some similarities despite their big differences. One of those shared includes the need to be able to make informed decisions and to think critically about the choices that are made.
People who work within these industries are naturally very equipped in these departments. They can use their minds to analyze patterns and trends, and make informed judgements about what they have seen. The advantage that they have over AI algorithms is that they can identify context, such as why something is happening or why an event occurred in the past.
The technology is unable to do this currently, making it potentially risky when trying to make predictions about something that is extremely volatile. While it can be useful in other areas, the human mind is still very important in the process of decision-making when it comes to investing or gambling.
This article was written in cooperation with Angelique Visser