The news cycle is consumed with the debate about artificial intelligence (AI) and how it is going to transform the world. AI, machine learning has been integrated into various Fintech platforms for years now but the rise of ChatGPT has drawn more interest and scrutiny.
A recent survey conducted by AML Group and The Nursery in the UK claims 73% of UK investors believe that ChatGPT could give reliable financial advice in the future.
While it is hard to imagine not being able to access a live person, technology is producing interesting results in regard to largely automated financial advice. For example, just this week, CI reported on D3VC.ai an investment platform that aims to achieve greater performance by leveraging AI.
The Investor Index, now in its 4th year, surveys 1100 UK adult (18+) investors with a minimum of £10,000 invested. The survey states that 73% of UK investors believe that ChatGPT could give reliable financial advice in the future, with 42% of younger investors (18-34) stating that they have already used the AI chatbot for advice.
The research also reports that 54% of UK investors aged 65+ also believe that ChatGPT could be the future of financial advice.
Robo-advisors, already widely utilized, are currently viewed as the future of investing by 46% and 34% saying that they would prefer to use a Robo-advisor than a financial advisor.
Sarah Nunneley, Senior Strategist at AML Group, says that ChatGPT is perceived as a promising source of advice across age groups.
“This is most significant among younger investors – but you would be amiss to dismiss this group as ‘just kids’, this can be people in their late 30s and 40s, with money to invest and confidence in their choices. The ‘new’ generation of investor is already here and they are looking at what is on offer, weighing up their options and it seems Robo-advice and AI are coming up on top. ”
Other information culled from the survey includes:
- 72% of all UK investors consider property to be the ultimate investment, 59% of younger investors (18-34) have stated that the cost of living crisis has stopped them from being able to buy a property. The research has also seen a significant decrease in younger investors investing to purchase a property – dropping from 38% in 2022 to 24% this year.
- The rise in the cost of living has caused UK investors to seek out better deals. 69% said that they were actively ‘shopping around’ with 45% saying that they were considering financial providers they had not previously heard of.
- Today’s UK investor is less focused on the ethical, environmental and social impact of their investments than they were 12 months ago. Just over one-third of UK investors (38%) in this year’s study stated that ESG investments were important to them – down 6% from 2022. There has also been a shift in prioritising those investments with vegan-friendly hit hardest dropping 16% from 38% to 22% and LGBTQ+ focused causes/investments dropping 4%. The demographic least focused on ethical investing is those aged 65 and over – with only one-quarter (24%) prioritising ethical investments.
The study notes that UK investors are more likely to rely on their own research, with 54% adopting a self-reliant approach – up 11% from last year. And of those who have never paid for financial advice, 29% of investors believe they can get all the information they need online.
Other findings include:
- Cryptocurrency as an investment choice remains unchanged (year-on-year) with 18% of UK investors still engaged with the volatile currency.
- 60% of investors believe long-term investments are more important than ever before.
- 37% of investors have been withdrawing funds from their current investments
- 54% have recently opened a high-interest savings account and 23% took money out of other investments to fund it.
- Investor confidence is at its highest level since the pandemic
- 31% of younger investors (18-34) are focusing on short term returns