A significant 65% of investors are said to be using Artificial Intelligence (AI) to aid them in the decision making process, according to a recent survey.
The poll queried 938 US investors to determine the degree of usage of AI investing tools. Conducted by investing.com, the results include the following responses:
- 24% say they use AI tools regularly
- 27% say they use them occasionally
- 11% say they have experimented with them once or twice
- 21% say they have not yet used AI but are considering it
- 17% say they do not plan to use AI tools for investing at all
- 17% say their performance improved significantly
- 48% who say it improved somewhat
- 62% of respondents say they use AI to research stocks or other assets
- 35% use AI to better understand financial news and market developments
- 34% use AI to generate investment or trading ideas
- 22% use AI to assist with portfolio decisions
ChatGPT was said to be the most common AI path with 54% using it for investing decisions.
On the flip side, 39% worry that AI tools can get it wrong and 24% fear “market herding”.
Thomas Monteiro, senior analyst at Investing.com, said that firms are offering all types of tools at a fraction of what they cost just a couple of years ago.
“Broad access to complex financial models is rapidly leveling the playing field,” said Monteiro.
It is still early innings for financial analysis and AI applications. Still, it is pretty simple to upload to annual reports and ask the AI app what changes have taken place or asking AI to provide a summary of analyst reports and the potential for competition.
It was not that long ago that you had to spend time in a library or read a newspaper to get information on securities so AI and analysis is really just part of a natural progression. And in the end, investors must make their own decisions.