When Your AI Disagrees with Your Portfolio
TL;DR for operators An AI investment assistant does not enter every portfolio discussion as a blank analyst. The paper behind this article shows that large language models can carry latent investment preferences: for certain sectors, for larger companies, and for contrarian rather than momentum arguments.1 The important mechanism is simple and uncomfortable. When buy and sell evidence are balanced, the model’s internal prior can break the tie. When counter-evidence later becomes stronger, that prior does not necessarily disappear. In mixed-evidence settings, the model may latch onto the fragment of evidence that supports its original inclination and discount the stronger opposing side. Splendid. Your “neutral” analyst has discovered confirmation bias and brought it to the investment committee. ...