Your bank account. Your savings account. Your p[tension. Your 401K. Your Roth IRA. Your brokerage account. All of these products are being introduced to a wave of AI based widgets and products and services designed to make it all easier to KNOW our net worth and our credit situations faster. More accurately. More precisely.
Fallacy.
In actuality all of our relationships with financial institutions are being experienced with by coders and machine programmers and AI Directors keen to justify their vision and their compensation packages.
If you are working in AI, the following is an example of what you will have to understand to move forward. If you are relying on AI, expecting to, or simply wanting to understand it, there is one lesson: an AI will allow a mistake a human would not.
Example:
Look closely at the image. Look at the numbers. The first column is prices of Options contracts. The second column is there change for the day. The third column is the financial impact of each with a cumulative effect reported in the far right had corner.
These numbers are wrong. A human would not be comfortable with, or allow these mistakes, to be published.
Even if they were using antiquated Options pricing systems they would note the failure of the machine to report accurately or correctly. Even a layman, someone who knows what a pout and a call is, might understand what they are seeing is, at best, inaccurate.
Contracts with different expiration dates and different strike prices CANNOT have the same valuation. More than half, 7/13, of the reported prices are the same. This, in any parlance, is impossible. A machine would not understand this or why. Only a human can understand that the system is failing.
So, your bank account balance, your credit card balance, your amount owed on a loan or a mortgage are being introduced to experimental systems and processes that are not human and thus are incapable of understanding there is a mistake.
A mistake that could make someone panic. A mistake that could have dire consequences.
An example:
Now what would you do if something was reported inaccurately? While you were presenting? Or applying for a Mortgage? Or, or or….?
The problem is that coders and machine [programmers and systems designers DO NOT KNOW EVERYTHING.
Thus, their attempt to build something omniscient is ludicrous. Never mind their intervention into something as fickle as Options markets.
Why? Your pension fund manager or mutual fund manager might make a trade based on the numbers they see. Or worse, the AI trading system might.
Disaster looms.