Having trouble explaining this through text but hypothetically, as Ai gets more involved in stock trading with the goal of returning profits wouldn’t it be ideal to an Ai to invest all in one stock to inflate its value?
And if enough Ai bots all bought into one stock at the same time while divesting in others could it potentially cause that one stock to go runaway and increase in value exponentially funneling up all market value causing a sudden collapse once those same bots either begin to sell or it’s realized that the runaway stock is exponentially overvalued compared to its company’s assets?
Could a stock potentially go runaway due to Ai?
byu/krenny_lavitz inAskEconomics
Posted by krenny_lavitz