Roadzen stock falls after AI-written Motley Fool article posts incorrect data

The stock of an insurance company took a huge dip after multiple media outlets shared an AI-generated article that reported inaccurate analyst estimates in regards to the company’s recent earnings.

Roadzen, a tech company that uses artificial intelligence for its auto insurance business, said the Motley Fool initially posted the inaccurate AI-generated article on Thursday after the company posted its first-quarter earnings, according to a release posted by the company Monday.

The company's stock dropped by 10.2% on the day the AI-generated article was published. Since Roadzen has addressed the inaccuracies, its stock has risen 11.5% on the day as of Monday afternoon.

The article said that analysts expected Roadzen’s revenue to be more than $21 million, the company said, which implied that Roadzen missed estimates by more than 50%.

Roadzen reported a revenue of $10.9 million; analysts had estimated its revenue to be $11.4 million.

The company said other outlets, including Nasdaq.com, AOL, and others, had shared the article on their respective platforms. It added that the Motley Fool issued a correction on Friday and that Nasdaq has pulled the article off its site. AOL’s article is still live.

The article — which has been updated as recently as Monday at 10:29 a.m. — has an editor’s note that reads: “A previous version of this article used incorrect analyst estimates. Numbers have been updated.”

The article's author is listed as “ JesterAI,” which the Motley Fool describes as its “friendly Foolish AI” and says it's based on a variety of LLMs and proprietary Motley Fool systems to generate investing news summaries. The outlet adds that it “stands behind the work of our editorial team and JesterAI, and takes ultimate responsibility for the content of everything JesterAI produces.”

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