Investors are increasingly open to relying on artificial intelligence (AI) to make their investment decisions, according to a new survey. While AI is still in its early stages, many investors are willing to embrace its potential when it comes to managing their portfolios. In fact, 41% of retail investors, particularly those in the 18-44 age group, are open to using AI tools like ChatGPT to choose and change their investment portfolios.
The survey, conducted by trading and investing platform eToro, polled 1,000 investors in the US. It revealed that 59% of respondents who already use or are willing to use AI tools would let the technology alter and execute trades on their behalf. This sentiment was even stronger among investors aged 35-44, with 69% expressing their willingness to allow AI to handle their trades. However, older investors were less inclined to trust AI with their portfolio management.
Interestingly, the survey also found a gender disparity in investors’ attitudes towards AI. Men, who are typically less risk averse, were more likely to trust AI for portfolio management and trading, with 52% expressing their confidence in the technology. In contrast, only 31% of women felt the same way.
Callie Cox, eToro US Investment Analyst, noted that AI has the potential to revolutionize investing by helping individual investors tailor their investments to their specific goals. While there are undoubtedly risks associated with using AI to manage portfolios, Cox believes that AI could significantly improve investors’ daily lives. She pointed out that using AI tools could save investors time on research, and 43% of respondents agreed that AI is the future of investing, while 40% believed it can make better decisions than they can.
The survey results also suggest that investors see AI as a valuable resource for their own strategies, as well as a potential replacement for traditional portfolio managers and financial advisors. Cox added that this scenario may not be too far off, given the existence of robo-portfolios. She even suggested that AI could become a reliable guide for the average American’s financial situation.
While some may find investing with AI too risky, there is growing interest in investing in AI itself. According to the survey, 10% of participants plan to increase their investments in AI stocks for the rest of 2023. Additionally, 23% expressed their intention to increase their investments in technology during the same time frame.
In conclusion, the survey conducted by eToro highlights a significant willingness among investors, particularly younger ones, to embrace AI for managing their investment portfolios. Despite the risks involved, many see AI as a valuable tool that can save time, make better decisions, and potentially replace the need for human advisors. As technology continues to advance, AI’s role in the investment landscape is likely to expand, offering new opportunities for investors to leverage its potential.
