In a recent meeting, a colleague quipped that “50 percent of the internet is now AI slop.” Having come across too many unbelievable videos and poorly written articles online, I wasn’t surprised that much of the web content isn’t human created. But I’m one for context. The reference came from the search engine optimization firm Graphite and pointed out that more articles were being created by artificial intelligence agents than by humans.
For me, the array of issues that the prominence of artificial intelligence has and could create speaks to a larger issue. With the introduction of AI tools, it’s becoming increasingly challenging to know what’s real and what isn’t.
Beyond articles, the ability to create audio and video that looks and sounds like it came from anyone can lend credence to conversations that might not even be warranted. We’ve worried conceptually about an “AI Fake” of a politician or authority figure making an announcement, for example, of a policy or position they didn’t otherwise support.
Financial fakes
We’ve seen a direct impact in the world of finance. In recent months, videos of famous investors have been making the rounds in support of particular investments or approaches to investing. Unfortunately, the videos can be quite convincing.
So, I was skeptical when a highly discerning client came to me expressing concern about the stocks in his portfolio after watching a recent video featuring famed investor Warren Buffett. Buffett has plenty of wisdom to share, but this particular message seemed to lack context as it told senior investors to abandon stocks in their portfolios in favor of CDs and cash.
The message seemed at odds with Buffett’s longtime personal investment strategy and the balanced approach he had taken for years at the helm of Berkshire Hathaway. But for this client, in this environment, the video resonated, and I wanted to understand why.
Learn more
Don’t Get Caught by a Deepfake Scam, from Consumer Reports
The Landaas & Company difference, a Money Talk Video with Art Rothschild
Financial guidance across generations, by Adam Baley
Heads Up: Trying to prove a spoof, by Joel Dresang
Heads Up: Fake financial professionals, by Jason Scuglik
Focusing on the individual
A quick email back and forth led to a phone call as we discussed how the client’s portfolio should change, considering the advice from the Buffett video. But rather than simply pushing the sell button, we discussed why Buffett’s advice hit a nerve with this client.
In short, as happens to many of us at certain times in life, the client had a number of outside factors weighing on his mind. Through our conversation, we came to an agreement that any portfolio change wouldn’t be in response to a message from Buffett but in response to the client’s desire to have his portfolio reflect his changing needs and wishes.
A day later, the client reached back to let me know he now believes the Buffett video was indeed a fake. I reminded him that the changes we discussed weren’t a response to Buffett but to the client’s needs.
Relationships matter
The growing prevalence of such fakes and related content make it increasingly challenging to discern what’s genuine and what’s simply a tactic to influence some change. It’s why having a relationship with your advisor is about more than just optimizing the efficient frontier or following the advice of some investment guru.
To be clear, there are some universal truths about investing, and the gurus have plenty to share. But no single investment approach is right for everyone. Even where we advocate balance – and frequent followers know we always advocate balance – the specifics of that balance and the ways we get there are different for each investor.
To that end, I find it’s a far better approach to ask how advice applies to me and why the advice might resonate than to blindly follow it.
Undoubtedly, we’ll see more of these videos promoting specific investments or investment philosophies. Real or fake, they serve as a jumping off point for a practical conversation on how to view our own individual investments.