MIT AI Risk Repository · Risk Sub-Category · 62.31.03#2

Use of alternative financial data via AI

Category: Impacts of AI (Financial Impacts)

Description

"Alternative financial data of a company is any data about the company not pro- duced by that company. Examples of such data that can benefit from improved collection and aggregation using AI models include stock discussions on social media, product reviews, and satellite imagery. The use of alternative financial data, enabled by the deployment of AI models, may introduce biases and generalization issues due to shorter shelf-life and vary- ing quality (e.g., shorter time series, smaller sample sizes, and dubious claims) due to its origins from various sources, posing financial tail risks (i.e.

From Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024), as extracted by the MIT AI Risk Repository (CC BY 4.0).

Classification

Causal entity
Human

Subdomain definition: Users anthropomorphizing, trusting, or relying on AI systems, leading to emotional or material dependence and inappropriate relationships with or expectations of AI systems. Trust can be exploited by malicious actors (e.g., to harvest personal information or enable manipulation), or result in harm from inappropriate use of AI in critical situations (e.g., medical emergency). Overreliance on AI systems can compromise autonomy and weaken social ties.

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