Investors intrigued by AI-powered trading bots should exercise caution, warns John Allan of the UK's Investment Association. While the hype suggests lucrative returns, AI's inability to predict unforeseen events and dependence on initial data quality pose risks. Generative AI, a more powerful form, may go awry if fed flawed data, leading to biased decisions or "hallucinations." Examples like Amazon's biased recruitment tool highlight potential pitfalls. Prof Sandra Wachter from Oxford warns of bias and data leakage risks, emphasizing the need for oversight. Despite these concerns, a significant number of investors trust AI's objectivity, reflecting a belief in its infallibility. Yet an AI investment tool may simply reflect all of the thinking errors and poor judgments of its developers. More than that, it may lose the benefit of intuitive experience and rapid reaction when unprecedented events strike in the future, such as the financial crash, and the Covid pandemic.