Retail investors close to retirement are increasingly investing in artificial intelligence stocks, boosted by ChatGPT’s launch in November 2022, according to data from eToro. Analysis from the social trading platform revealed that the number of over-55s investing in AI stocks has grown considerably faster than all other age groups.
Position openings by over-55s on AI stocks spike in the first quarter of 2023, as viewed by eToro’s platform, with a 60% increase in new positions since the previous quarter. Meanwhile, the 18-34 age group saw a 41% rise, and the 35-44 age group experienced a 54% jump.
C3.ai (NYSE:AI) saw the strongest growth from the over-55 crowd, with a 22,000% increase in new positions. This growth rate is three times higher than the growth rate of other age groups. Other AI stocks that benefited from the interest of mature investors were Intel (NASDAQ: INYC), with 93% growth in new positions, NVIDIA (NASDAQ: NVDA), with 91% growth, and SentinelOne (NYSE: S) with 84% growth.
In response to the data, Ben Laidler, Global Markets Strategist at eToro, commented that although it is often assumed that only younger, tech-savvy individuals adopt AI, the findings show that the use of ChatGPT has encouraged investors of all ages. Laidler noted that this interest displays technology’s potential to be a chance for financial success to all investors, regardless of age.
eToro’s Retail Investor Beat, an international survey of 10,000 retail investors across 13 countries, provided further evidence of the rising trend of AI adoption. Of the respondents aged 55 and over, a substantial 17% plan to raise their investments in benefiting sectors from AI, while only 5% plan to reduce allocations to those sectors. In addition, almost half (46%) of that demographic prefer to use AI or machine learning for portfolio management over human fund managers.
To demonstrate its commitment to advancement, eToro has teamed up with Twitter for the development of a new financial super app, helmed by Elon Musk. As of last week, users are able to buy and sell stocks and other assets straight from eToro on the social media platform.
Tiger Brokers, the trading arm of UP Fintech Holding Limited, a leading online brokerage firm in China, has also jumped into the emerging technology. The firm recently unveiled TigerGPT, an alternative to the AI chatbot ChatGPT, as their first AI trading assistant. Leveraging OpenAI’s advanced artificial intelligence, TigerGPT has access to Tiger Brokers’ vast content library, market and stock insights, along with premium source access. The investment assistant is designed to interpret user queries and respond quickly with helpful information, enhancing pre-investment research efficiency.
Overall, it is apparent that mature investors are taking interest in AI stocks, especially with the rising availability of AI-based tools. Major brands are beginning to explore the potential of AI to make trading more accessible, efficient and profitable.
