Artificial intelligence [AI] and companies leading this tech sector are the new shiny. It’s almost gold rush like as people seek to invest in AI firms as the masses finally became aware that the technology has now hit mass adoption.
The catalyst is ChatGPT, which has helped launch hundreds of other companies and services.
A report today from eToro highlights the trend as a survey initiated by the firm indicates that 57% of US retail investors either hold AI-related stocks today or plan to do so in the future.
eToro US Investment Analyst Callie Cox says that after a year of AI innovation and growth, investors are taking advantage of the AI opportunities.
“Investors are quickly becoming more comfortable with AI, which has the potential to drive forward a new phase for the sector.”
The eToro survey highlights that mostly young investors have jumped into the AI space, as 65% of investors aged 18-34 have exposure to AI stocks.
Interestingly, 55% of US female investors are open to using AI for portfolio management, and 38% of female investors are currently invested in AI-related stocks, compared to 22% of male investors. Male investors are less willing to allow AI to aid in their portfolio management as those interested in doing so fell from 60% in Q3 2023 to 41% in Q4 2023, while women went from 33% to 55% in Q4.
Those investors over 55 exhibited the most aversion to AI tools, with 66% saying they would not use AI technology in their portfolio.
In the end, AI will be ubiquitous and used by all to discern or decide. This is inevitable. What is unknown is how government authorities will regulate the tech – especially in financial services.
Other information gleaned from the survey is that the tech sector is the top segment of interest, with 14% prepared to increase their positions here, followed by financial services (11%) and then real estate, healthcare, and energy – all at 9%.
The survey took place from November 27th to December 8th and polled 10,000 retail investors in 13 different countries.