Is It Okay to Trust AI Financial Advisory Services? Recently, a large securities firm in Korea provided financial advisory services through an AI (Artificial Intelligence) program, recommending stocks to buy and sell. On the 14th, the Financial Services Commission (FSC) warned that it would take strict measures against illegal financial advisory services, including those provided through AI programs. The FSC stated that some securities firms have been providing financial advisory services through AI programs, recommending stocks to buy and sell based on machine learning algorithms. However, the FSC emphasized that these services are not registered with the commission and therefore are illegal. The FSC explained that only financial investment advisory firms registered with the FSC are allowed to provide financial advisory services. The warning comes as some AI financial advisory services have been aggressively marketing themselves, with one service recommending that users “open a stock trading account and buy stocks for just 10 more weeks.” The FSC stated that it will take strict measures against these illegal services, including shutting down websites and taking legal action. The FSC advised consumers to be cautious when using AI financial advisory services and to verify whether the service is registered with the FSC before using it. In addition, the FSC recommended that consumers do not provide personal financial information to unregistered financial advisory services. The FSC also warned that consumers who use illegal financial advisory services may face penalties, including fines and imprisonment. The FSC will continue to monitor AI financial advisory services and take action against those that are operating illegally. Meanwhile, some experts have raised concerns about the potential risks associated with AI financial advisory services. They argue that AI programs may not fully understand the complexities of the financial market and may provide inaccurate or biased advice. As the use of AI financial advisory services continues to grow, it is essential for consumers to be aware of the potential risks and to take steps to protect themselves. The FSC will continue to work to ensure that financial advisory services, including those provided through AI programs, are operating fairly and transparently. In order to prevent such illegal cases, the FSC will strengthen its monitoring and inspection of financial advisory services. The FSC aims to protect consumers and maintain the integrity of the financial market.
A recent survey by the Organisation for Economic Co-operation and Development (OECD) found that 68% of Korean adults used generative artificial intelligence (AI) for financial counseling and tasks. The AI, such as ChatGPT and Gemini, can help with financial management, including creating a monthly budget, setting savings goals, and providing investment advice.
However, the OECD warned that users should not blindly follow AI advice, as it may be based on incorrect information or biased data. The AI may also provide generic advice that does not take into account individual circumstances, and there is a risk of advertising and advice becoming blurred.
Written by urgent.news from Hankyoreh's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
