Half of world’s investors are taking financial advice from AI:Survey – 14 to 45 year old youth trust AI tools

Whether it’s savings or investment – now before making decisions, people have started consulting AI instead of banks or advisors. A recent survey by global professional services company EY has revealed a surprising trend. Nearly half of the people worldwide are making investment decisions with the help of AI. According to the survey report conducted on 18,000 people from 23 countries, 49% of consumers made decisions related to savings and investments with AI’s help in the past six months. 37% said that they consider AI quite useful for personal financial advice or automated decisions. In Britain, 35% of people made savings and investment-related decisions with AI’s help; sensing the danger, the financial regulator has started reviewing this trend 68% Gen Z, 65% Millennials Trust AI The highest enthusiasm was observed among Gen Z (14-29 years) and Millennials (30-45 years). 68% of Gen Z and 65% of Millennials make investment decisions with the help of AI. In the UK, 35% of people made savings and investment-related decisions with AI assistance. ChatGPT became the most popular tool there. Google Gemini ranked second in this regard. AI is Ahead in These Matters: In explaining rules and calculations, in summarizing data, in identifying gaps in investment matters But Weak in These Matters: In giving accurate advice according to personal circumstances, answers to incomplete questions are often incomplete, facts cannot be relied upon, independent verification necessary UK – Legal recourse limited if investing based on AI advice Britain’s financial regulator FCA has made it clear that general AI tools like ChatGPT and Claude are not authorized for financial services. Their advice does not fall under the purview of the Financial Ombudsman Service or the ‘Financial Services Compensation Scheme’. This means that if any loss or fraud occurs while investing with AI assistance, the scope for legal recourse will be limited. The FCA also initiated a review of this trend in January. Investors cannot rely solely on AI – Experts AI is a powerful assistive tool, but it works best when used alongside other trusted sources. – Andrew Oxlade, Fidelity International The expansion of AI will depend on trust. Financial institutions should adopt AI with transparency and accountability. – Pritam Pedanagari, AI Expert, EY AI is smart at explaining rules and calculations, but these mechanical tools cannot tell you what you should actually do, says, Holly Mackay, founder, Boring Money