Artificial intelligence hallucination is a frequent problem for users of AI platforms. Pratyush Mittal, co-founder of Screener AI, described the underlying mechanics of AI as an "answering machine" which "may give answers that don't exist, and where there is no context, it will hallucinate".
AI hallucinations occur when a large language model (LLM) perceives patterns or objects that are non-existent, creating nonsensical or inaccurate outputs.
"A lack of a credible source can lead to hallucination," Mittal explained, speaking at the NDTV Profit Ignite Conclave. He cautioned analysts and researchers, "If there are too many numbers, cross-check. Every AI model has its own personality."
Sumit Chanda, founder of Jarvis Invest, whose platform started in 2016, also focused on the importance of proprietary, validated models.
"Equity research was a manual process decades ago. The amount of data available now is multifold," he said.
Jarvis Invest's strategy has been to look at the bigger picture first. "We go top down," he explained, noting their early work in studying how Indian markets react to global events and building a model for cross-country correlation.
Chanda stressed the need to constantly refine the system. "We have to train AI systems to track patterns," he said.
Jarvis Invest's dedication to reliability means they use "our own models, no GPT or Perplexity, it doesn't hallucinate, there is a process of validation." This focus on proprietary tech is aimed at securing an "alpha" edge. He concluded by explaining, "We are sourcing all data ourselves by our engines."
Despite the revolutionary capabilities of AI, the consensus among the founders is that human judgment remains irreplaceable.
"AI plus human is always better than just having one," Sumit Chanda said.
Looking ahead, Chanda predicted a future where the technology becomes commonplace, making it more affordable for investors.
"AI systems and subscriptions will be commoditized and priced lower."
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