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AI-Generated Article Triggers 10% Plunge in Insurance Firm's Stock
20 Aug
Summary
- Inaccurate AI-generated article reported wrong earnings estimates
- Insurance company's stock dropped 10.2% on the day the article was published
- Company has since addressed the inaccuracies, and stock has risen 11.5%
On August 18th, 2025, an insurance company experienced a significant stock dip after multiple media outlets shared an AI-generated article that reported inaccurate analyst estimates regarding the company's recent earnings. The tech company Roadzen, which uses artificial intelligence for its auto insurance business, stated that the Motley Fool initially posted the erroneous AI-generated article on Thursday, following the company's first-quarter earnings release.
The article claimed that analysts expected Roadzen's revenue to exceed $21 million, implying the company had missed estimates by more than 50%. However, Roadzen reported actual revenue of $10.9 million, with analysts estimating $11.4 million. This inaccurate information led to a 10.2% drop in Roadzen's stock price on the day the article was published.
Since then, Roadzen has addressed the inaccuracies, and its stock has risen 11.5% as of last Monday afternoon. The Motley Fool has issued a correction, and Nasdaq has removed the article from its site, though the AOL article remains live with an editor's note acknowledging the previous use of incorrect analyst estimates.
