You use Betterment, Wealthfront, Schwab Intelligent Portfolios, Origin, or other robo-advisors or artificial intelligence (AI) investment platforms in the hopes of achieving investment returns. Unfortunately, you suffer from robo-advisor and AI investment losses. If these losses are the result of investment misconduct, you could pursue compensation from any liable parties.
At Meyer Wilson Werning, we empathize with those who’ve lost money after they’ve used robo-advisors or AI investment platforms. Our team has more than 75 years of combined experience. Our nationwide securities lawyers can examine your case and explain your legal options in depth.
We offer free case consultations to those dealing with the aftermath of losing $100,000 or more from robo-advisors and AI investment platforms due to potential investment misconduct.
If an investment adviser or firm is involved in your financial losses, we may be able to help you with your case. Contact us today for more information.
Robo-Advisor and AI Investment Platform Failures: When Algorithms Cause Losses
People may look to robo-advisors and AI investment platforms for automated, efficient portfolio management. However, many people don’t realize that the algorithms powering these technologies are susceptible to failure.
Some of these reasons why robo-advisors and AI investment platforms fail include:
- Market turbulence and flash crashes: Algorithmic trading can increase the risk of stock market crashes. For example, consider the 2010 flash crash, which was driven by an automated selling algorithm that wiped out $1 trillion in market value in minutes.
- “Black box” opaque logic: It’s often incredibly difficult to interpret data provided by AI systems. As such, investors may only discover that these systems rely on limited data or inherent biases after they incur substantial losses from robo-advisors and AI investment technologies.
- Too dependent on historical data: Algorithms are designed based on past market behavior. If a “black swan” event occurs that falls outside of an algorithm’s framework, a robo-advisor or AI investment tool won’t necessarily be able to “read between the lines,” resulting in failure.
- Technical, algorithmic, and operational glitches: Robo-advisor and AI investment technology glitches can disrupt investment performance. In one such instance, Betterment and Wealthfront reported site crashes during a 4.1% drop in the S&P 500.
Meyer Wilson Werning offers FAQs and other resources for those unsure how to respond after economic losses related to robo-advisors and AI investment technologies. Additionally, our securities lawyers can evaluate the specifics of your situation and provide you with personalized legal advice.
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Who Is Responsible for Robo-Advisor and Artificial Intelligence Investment Losses?
These are times when a defect in a robo-advisor or AI investment technology algorithm contributes to an investor’s monetary losses. In this scenario, a developer or programmer could be held liable.
Your investment adviser or firm may use robo-advisors and AI technologies to manage your portfolio and you face robo-advisor and artificial intelligence technology investment losses. Your investment adviser or firm may have a fiduciary duty to you. Thus, if they engaged in misconduct, they may be liable for your robo-advisor and AI investment technology losses.
Of course, using robo-advisors and AI investment technologies can be risky under certain circumstances. If you lose money because you rely heavily on robo-advisors and AI investment technologies, and an investment adviser or firm wasn’t involved, it is unlikely that securities lawyers can help you get compensated for your monetary losses.
Can You Recover Monetary Losses From Robo-Advisors and AI Investment Technologies?
You may be able to recover your economic losses from robo-advising and AI investment technologies, but doing so can be a long and challenging process. On top of that, if you go through this process alone, you may not get the case results that you want.
Meet with securities lawyers who understand cases involving investment misconduct with robo-advisors and AI investment tools if you want to take legal action against anyone who may be responsible for your financial losses. Your attorney can review your case and let you know if you could get compensation for the financial harm that you’ve suffered.
Depending on the circumstances of your situation, you could move forward with arbitration via the Financial Industry Regulatory Authority (FINRA).
In FINRA arbitration, your securities attorney can present your case to one or more arbitrators, and the other party involved will have the opportunity to argue their case. Next, you may receive a legally binding arbitration decision.
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Discuss Your AI Investment and Robo-Advisor Losses With Our Securities Attorneys
It’s frustrating to lose money because of artificial intelligence and robo-advisor investment technologies. Thankfully, those who’ve lost hundreds of thousands of dollars or more due to these technologies could have grounds for seeking compensation if their losses are the result of misconduct by an investment adviser or firm.
The Meyer Wilson Werning team is large enough and tough enough to fight for your investment losses against the most powerful adversaries.
Our securities lawyers can detail what you may be able to do to get compensation from anyone who engaged in misconduct and caused you to lose money due to robo-advisor and AI investment technologies.
Allow us to evaluate your case and advise you on what to do following your AI investment and robo-advisor losses. Request a free case consultation.
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