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Written by a human, not Ai (it didn’t agree with the premise of the topic!).
Ai has become increasingly popular, saving us time and effort. For some things, it’s reliable.
But relying on Ai to make investment decisions is risky. Here are 5 reasons why, with some examples …
1. Ai doesn’t see the future
An example: Ai widely believed the US S&P500 index would outperform the world last year, due to Trump’s election and “US exceptionalism”.
This belief mirrored media headlines and stale predictions at the start of 2025: “you can’t go wrong with the S&P500”
But in 2025, the US S&P500 significantly underperformed the world. And the US dollar declined by almost 10%.
Our community (of humans) fared much better – check our 2025 investment calls and results here.
2. Confidence, even when making things up!
Ai always sounds detailed and authoritative. But it often contains inaccuracies.
One of our member investors shared with me an Ai-generated list of funds, complete with 10-years of returns and various ratios on each fund.
The problem?
Some funds on that list had not even existed for 10 years!
Ai sometimes fills gaps with numbers it thinks “fit the pattern.”
Fortunately, this investor had access to experienced humans (us) to cross check their info.
Don’t just take my word for it: this FT piece recently found that Ai provides the wrong advice half the time
3. US-centric answers for UK investors
Real examples i’ve seen include:
- Suggesting US-listed ETFs (UK investors cannot buy US-listed ETFs)
- Recommending a ‘401k’ (US pension plan) to UK residents
- Incorrect guidance on UK tax allowances
Some of this can lead to trouble if followed without proper (human) guidance.
4. Unhelpful for Options
The most important part of options investing is choosing the right underlying (i.e. the stock or ETF we are doing the option on).
Because .. we need to have a properly balanced portfolio to create a diversified income stream.
Ai regularly fails to deliver the right results on Options – partly due to points #1 and #3 above.
We instead provide our members with a proven watchlist of 40 underlyings to choose from.
This watchlist has been curated using many years of our options investing experience.
It’s essential for creating a properly balanced income portfolio.
5. Human Support
Inside the Investment Accelerator, members value the human support and cross-checking – from us coaches and our experienced community.
A few examples of things we’ve caught in real time:
- A member was unknowingly paying ~ 2% pa in fees to a work pension plan and IFA-managed fund. This could have meant losing approx £300,000 in fees over time.
- Another held five different ETFs that were 70–80% identical
- Options trades that looked harmless on paper but were based on trashy underlyings
- Emotional decisions during market dips (eg last April’s tariff tantrum) where someone nearly sold out at the worst possible moment.
Ai won’t challenge you on any of this and won’t stop you from making an expensive mistake. We and our community will.
Should you use Ai?
Yes but not to make final investment decisions that would be costly to later reverse.
Ai can be useful for speedy initial research and pointing you in the right general direction.
But your long-term wealth needs something more reliable than a machine that occasionally invents facts.
For this, there is no substitute for experienced human support.
One incorrect answer on taxes, fees or options can set you back years.
If you want a clearer, proven, more reliable way to invest the Investment Accelerator gives you exactly that.
For a brief chat with me about our Options and investment training, book a call with me here.
Always Remember:
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
And …
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
Click here to learn about our Investment Academy
Finally …
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now |
