Buying global A.I. stocks? Here are the 3 risks investors should watch closely, HSBC says

Asian companies exposed to artificial intelligence have seen a 30% increase in value since November 2022 — when ChatGPT was unveiled. However, HSBC has warned that investors should consider three significant risks before investing in AI stocks: disappointing demand, increased competition, and regulations.

As a result, the stock fell by 85% over the following three years, having rallied by 150% in the two years leading up to the Olympics. Regulations also play a critical role, according to HSBC. "There's likely to be a lot of government regulations and guidelines around the world aimed at protecting personal data and specifying how it can be used in A.I. models," said van der Linde. For instance, China recently released guidelines requiring mandatory assessments before any A.I.

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