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Most UK investors comfortable using AI for investment advice
New research has found more than two-thirds of investors would accept AI support in providing investment advice, though the majority prefer a blended approach
AI is creating even more of a buzz than usual this week as Prime Minister Rishi Sunak has headed to Bletchley Park for the AI Safety Summit.
As big names like Sam Altman and Elon Musk fly in to the codebreaking sites to address ‘here and now’ threats, new research has shown that the majority of investors in the UK would be comfortable using AI for investment advice.
Two thirds of investors said that while they would not delegate tasks in their entirety to AI, they would be happy to use the technology across a range of financial tasks.
According to new data from Avaloq, the majority of investors prefer a combined approach (54 per cent), and just 15 per cent would be comfortable with the entire investment process being fully led by AI.
“Our research reveals that investors are more open to using AI in the investment process but still want the human touch, indicating natural opportunities for wealth managers to integrate AI into their offerings in a way that augments the service they provide,” Avaloq head of data science Gery Zollinger said.
“Scepticism over full delegation to AI and the issues that will be highlighted at this week’s AI Safety Summit offer pause for concern and highlight the importance of the financial sector fully understanding the risks associated with AI — as well as the need for effective regulation to ensure that AI does not compromise investor safety.”
Zollinger added that it is “vital” for financial services firms that use AI to have a “robust” monitor framework in place to address any shortcomings, which could include unethical outcomes.
Since last year, the proportion of investors who are comfortable with AI providing product recommendations based on investment behaviours and changes in situations has risen by eight percentage points to 71 per cent.
Avaloq’s research also found that investors from markets in Europe and Asia were more receptive to using AI than those in the UK.
The global average for investors willing to use AI as part of their approach to financial tasks was 74 per cent, compared to 69 per cent in the UK.
