According
to the latest annual Investor Index study, a new wave of reliance on Artificial
Intelligence (AI) for financial advice is taking shape in the UK. The survey
indicates that 73% of UK investors trust AI chatbot, ChatGPT, to provide
reliable financial advice in the future.
ChatGPT Reshapes Investment
Strategies
ChatGPT is
a global phenomenon with 100 million users and a monthly website visit of over
1.8 billion. Now it seems to be gaining the trust of not just younger
investors, but also those aged 65+. While 42% of younger traders have already
sought advice from ChatGPT, over half of the older demographic also believe in
the potential of ChatGPT as a future financial advisor.
According
to Sarah Nunneley, the Senior Strategist at AML Group, ChatGPT's perceived
future role in offering advice across all age groups is ‘remarkable’. The older generation's interest in AI was also evidenced by data published by eToro, a social trading platform, in April.
“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,” Nunneley commented on the
study. “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.”
According to a recent analysis by Finance Magnates Intelligence, AI has the potential to change the FX/CFD industry. The only question is when it will happen.
The Rise of the
Self-Reliant Investor
Additionally, self-reliance
in financial matters has significantly risen, with 54% of UK investors
depending more on their own research. It is an increase of 11% compared to last year. The cost of living crisis seems to have taught investors to navigate
investment independently, with 79% of younger investors adopting a largely
autonomous approach.
“In this,
our 4th annual study, we’re seeing the cumulative effect of relentless bad news
– pandemic, war, cost of living – in increasing investors’ belief in their
ability to make investment decisions – be they prioritizing away from ethical
for now or simply minimizing risk, adding high-interest savings accounts or
keeping their portfolios the same,” Christian Barnes, the Head of Strategy at
AML, explained.
Barnes also
stated that self-reliance on financial markets is currently the ‘new
selfishness’.
However,
the conclusions drawn from the Investor Index study oppose a
separate survey conducted by Cyprus' financial markets regulator, CySEC
CySEC
The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision
The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision
Read this Term. The
institution found that one in three retail investors already relies on the
opinion of financial influencers, the so-called ‘finfluencers’. The highest
percentage was recorded in France (42%), while the lowest was in Germany (24%).
Economy Shifts Trading
Priorities
Interestingly,
the focus on investments' ethical, environmental, and social impact has
dwindled compared to last year. Now, only about a third of UK investors see ESG
investments as crucial, marking a drop of 6% from 2022. In terms of demographic
distribution, those aged 65 and over are least focused on ethical investing.
“The shift
we’re seeing away from ESG priorities can be interpreted in several ways and
will be an important trend to watch in the coming years,” Pauline McGowan, the Head
of Strategy at The Nursery, commented.
During
qualitative sessions, younger investors expressed their desire for investments
that contribute positively to the world. They showed a strong interest in
supporting new green initiatives and future-oriented technological solutions
like AI and robotics.
The impact
of AI on investment advice, the cost of living crisis, and shifting investment
priorities are significant trends in UK investors' behavior. AI's role, particularly ChatGPT, seems set to redefine the future of investment
strategies.
The Index,
a comprehensive survey of investor behavior, is a joint effort by AML Group, a
London-based communications agency, and The Nursery, a team of research and
planning experts.
According
to the latest annual Investor Index study, a new wave of reliance on Artificial
Intelligence (AI) for financial advice is taking shape in the UK. The survey
indicates that 73% of UK investors trust AI chatbot, ChatGPT, to provide
reliable financial advice in the future.
ChatGPT Reshapes Investment
Strategies
ChatGPT is
a global phenomenon with 100 million users and a monthly website visit of over
1.8 billion. Now it seems to be gaining the trust of not just younger
investors, but also those aged 65+. While 42% of younger traders have already
sought advice from ChatGPT, over half of the older demographic also believe in
the potential of ChatGPT as a future financial advisor.
According
to Sarah Nunneley, the Senior Strategist at AML Group, ChatGPT's perceived
future role in offering advice across all age groups is ‘remarkable’. The older generation's interest in AI was also evidenced by data published by eToro, a social trading platform, in April.
“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,” Nunneley commented on the
study. “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.”
According to a recent analysis by Finance Magnates Intelligence, AI has the potential to change the FX/CFD industry. The only question is when it will happen.
The Rise of the
Self-Reliant Investor
Additionally, self-reliance
in financial matters has significantly risen, with 54% of UK investors
depending more on their own research. It is an increase of 11% compared to last year. The cost of living crisis seems to have taught investors to navigate
investment independently, with 79% of younger investors adopting a largely
autonomous approach.
“In this,
our 4th annual study, we’re seeing the cumulative effect of relentless bad news
– pandemic, war, cost of living – in increasing investors’ belief in their
ability to make investment decisions – be they prioritizing away from ethical
for now or simply minimizing risk, adding high-interest savings accounts or
keeping their portfolios the same,” Christian Barnes, the Head of Strategy at
AML, explained.
Barnes also
stated that self-reliance on financial markets is currently the ‘new
selfishness’.
However,
the conclusions drawn from the Investor Index study oppose a
separate survey conducted by Cyprus' financial markets regulator, CySEC
CySEC
The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision
The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision
Read this Term. The
institution found that one in three retail investors already relies on the
opinion of financial influencers, the so-called ‘finfluencers’. The highest
percentage was recorded in France (42%), while the lowest was in Germany (24%).
Economy Shifts Trading
Priorities
Interestingly,
the focus on investments' ethical, environmental, and social impact has
dwindled compared to last year. Now, only about a third of UK investors see ESG
investments as crucial, marking a drop of 6% from 2022. In terms of demographic
distribution, those aged 65 and over are least focused on ethical investing.
“The shift
we’re seeing away from ESG priorities can be interpreted in several ways and
will be an important trend to watch in the coming years,” Pauline McGowan, the Head
of Strategy at The Nursery, commented.
During
qualitative sessions, younger investors expressed their desire for investments
that contribute positively to the world. They showed a strong interest in
supporting new green initiatives and future-oriented technological solutions
like AI and robotics.
The impact
of AI on investment advice, the cost of living crisis, and shifting investment
priorities are significant trends in UK investors' behavior. AI's role, particularly ChatGPT, seems set to redefine the future of investment
strategies.
The Index,
a comprehensive survey of investor behavior, is a joint effort by AML Group, a
London-based communications agency, and The Nursery, a team of research and
planning experts.
