Guarding Against Risks in AIBased Investment
management platforms try to attract funds by lying about investment returns and exaggerating the strength of AI technologies, but actually they are engaging in Ponzi schemes and other fraud activities; and some platforms misappropriate investors’ funds, which may cause liquidity crises.
On the other hand, even in licensed institutions, AI-based investment activities may also lead to many problems: Is robot investment compliant with regulations? How will investment returns be divided? Who will bear the losses? Who are the actual controllers of investment accounts in mobile phone applications? How to deal with the legal risks of “persons acting in concert” in the stock market when investors hire the same excellent robot to invest in the market? And how to deal with the ethical risks once investment robots damage the interests of others in order to maximize investment returns?
These problems involve not only legal and ethical risks, but also the stability and sound development of the financial system. For instance, since AI-based investment is closely connected with Internet companies, it involves much more investors than traditional investment methods. The risks will therefore be much more widely spread via the Internet, and more likely to cause systemic financial risks. Moreover, AI-based investment itself is vulnerable to risks such as attacks from hackers, Internet breakdown, algorithm defects, technology risks, unauthorized operations and the leakage of personal information.
The National Financial Work Conference, which convened in Beijing on July 14-15, vowed to resolutely punish behaviors severely disturbing the financial market order, strictly regulate transaction behaviors in the financial markets, enhance supervision of Internet-based finance and strengthen the responsibility of financial institutions in preventing risks.
This requires related government departments and institutions to actively prevent potential financial risks arising from AI-based investment, discover and dispose of those risks as early as possible and guide such investment to better serve the real economy and investors.