UK investors are looking towards chatbots and robo-advisors for financial advice, according to the Investor Index 2023 study. The report published by communications agency AML Group and research and planning experts, The Nursery, surveyed 1100 UK adults aged 18 and over with a minimum of £10,000 invested. 73% of investors believed that the AI chatbot, ChatGPT, could offer financial advice in the future, and 42% of younger investors have already used it for advice. Additionally, 46% of investors believe robo-advisors are the future of investing, while 34% would prefer to use a robo-advisor over a human financial advisor.
The study also revealed that 59% of younger UK investors were unable to purchase a property due to the cost of living crisis, and there has been a decrease in younger investors investing in property, from 38% in 2022 to 24% in 2023. However, 72% of all investors still consider property as the ultimate investment.
The research found that ethical, environmental, and socially responsible investing (ESG) was less important to today’s investors than it was 12 months ago, with vegan-friendly investments and LGBTQ+ causes seeing drops in interest. Just over one-third of UK investors, or 38%, stated that ESG investing remained important, down 6% from 2022.
When it comes to financial guidance, UK investors prefer taking a self-reliant approach, with 54% choosing to rely on their own research, up 11% from 2022. Additionally, 29% of investors who have never paid for financial advice believe they can get all the information they need online.
The rise in the popularity of chatbots and robo-advisors as trusted financial advisors could be attributed to investors’ desire for control over their finances, especially during a cost of living crisis. Meanwhile, the decreased importance of ESG investments and the shift towards a self-reliant approach could be connected to investors prioritising personal gain over doing good for the world.
The Investor Index has established itself as a rigorous barometer of investor behaviour based on hard data, having been conducted for the past four years. These findings could signal a significant shift in the financial industry, as investors increasingly look towards technological solutions for financial guidance.
