IBM

AI Hallucinations: Modern AI language models often exhibit "hallucinations," where they provide confident but incorrect information, particularly in critical areas like legal and financial contexts. A study found that nearly half of AI responses were inaccurate or based on unverified sources.

Understanding Limitations: IBM researchers emphasize that AI systems do not truly understand their outputs; they predict words based on data patterns. As models grow, they become more uncertain, leading to potential issues in high-stakes decision-making.

Improving AI Transparency: IBM is developing tools like the Attention Tracker to enhance AI transparency and trustworthiness, allowing users to see how models generate responses. They are also creating an "AI risk atlas" to monitor risks such as bias and hallucinations.

IBM Stock Outlook: Analysts have a Moderate Buy consensus on IBM stock, with a price target of $295.18 per share, indicating a potential downside risk of 6.5%.

Paramount Skydance Performance: Paramount Skydance is the worst performing S&P 500 component for the day, down 2.8%, but has a year-to-date gain of 55.5%.

Other S&P 500 Movers: Chevron is trading down 1.9%, while International Business Machines (IBM) is up 3.4% on the day.

Market Overview: The article provides insights into the performance of specific S&P 500 components, highlighting significant daily movements.

Author's Perspective: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.

Chevron Performance: Chevron is the worst performing Dow component for the day, down 1.9%, but has a year-to-date gain of 5.8%.

Apple and Nike Movements: Apple is trading down 0.7%, while Nike is up 2.4% on the day.

Market Overview: The article provides a brief overview of the performance of key Dow components.

Author's Disclaimer: The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.