Sunday, August 10, 2025

AI and cartels.

     AI and cartels. 



Increasingly, more actions are being outsourced to AI. The stock market is a vast arena where individuals can utilize more or less sophisticated algorithms. The algorithm can see things. Like, changes in courses, like raising the value faster than a human. Then the AI-trainer must have the point where to sell and where to buy. The system must follow the small losses of the values and then decide to buy or sell. 

The AI must buy cheap shares and sell them when their value is high enough. The AI can follow more targets than a human. And it can see how the share values advance. If those shares are losing their value fast. And a person doesn't watch that curve, which causes losses. The AI will never get boring. And it ever sleeps. The case of the investor finds something else interesting: the screen on the table can cost millions in seconds. 

The AI can be a tool that solves those problems. But algorithms can exchange information illegally. The cartel means a situation in which a person uses an inner circle or non-public information to make profits from the stock market. 

And one version of cartels is a case. When traders make a contract to drive investments to certain targets. When somebody buys shares. That raises their values. So the group just dumps money into some target. The AI can also accidentally ask for advice from another AI. 

There can be a leading algorithm. That leader algorithm makes investments, and then other algorithms follow that thing. The fact is that,  even if some algorithms or AI chatbots look different, they can operate on the same platform. The AI chatbots can be the same, even if they seem different. And that thing means the AI can start to drive investments to certain objects. One AI-based solution can operate millions of investors' investments. 

This kind of AI can theoretically aim for even billions of dollars to the same target. And that thing makes it possible to raise the value of the shares. The AI is the tool that can react faster than humans. Criminals can create the AI-based investment cartels using quite simple algorithms. The AI that can control millions of objects in the bors can guarantee that a person cannot lose money in that game. The AI can invest small sums of money in a large group of targets. The system can buy and sell shares far faster than a human. So the person will always get profits. 


https://fortune.com/2025/08/01/artificial-stupidity-ai-trading-stock-market-behaviors-price-fixing-collusion-wharton-study/


https://finance.yahoo.com/news/artificial-stupidity-made-ai-trading-110500308.html

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