A new report from the Investor Index uncovers significant shifts in investor behaviour and attitudes in the UK, highlighting the growing trust in AI-driven financial advice, the impact of the cost of living crisis on investment choices, and a surprising move away from ethical investing.
With AI continuing to permeate our daily lives, it’s no surprise that it’s making a mark on the investment landscape. 73% of UK investors believe that AI chatbot, ChatGPT, could offer reliable financial advice in the future. This is notably prevalent among younger investors, with 42% reporting that they’ve already sought advice from ChatGPT. Older investors also show openness to AI in finance, with 54% of those aged 65+ considering ChatGPT a viable source for future financial guidance.
As well as AI, robo-advisors are gaining traction among investors. 46% see them as the future of investing, with 34% preferring to use a robo-advisor over a traditional financial advisor.
The cost of living crisis has inevitably impacted investment behaviour. Property remains the preferred investment for 72% of investors. However, 59% of younger investors confess that the crisis has prevented them from investing in property. These financial pressures have also prompted investors to seek better deals, with 69% shopping around and 45% considering previously unknown financial providers.
Interestingly, despite growing global interest in ESG (Environmental, Social, and Governance) criteria, the study reveals a drop in UK investors prioritising ESG investments. From 2022 to 2023, this fell from 44% to 38%.
AML Group senior strategist Sarah Nunneley said, “While ChatGPT is currently not regulated, its perceived promise as a source of advice in the future across age groups is remarkable.” She added that the new generation of investors seems to favour robo-advice and AI.
Reflecting on the impact of the cost of living crisis, The Nursery account director Emma Harries said, “The state of constant crisis seen over the past few years has led to an increasing belief that people have to take control of their own future.” This has driven many towards investment as a potential path to wealth.
On the topic of ESG investing, The Nursery’s head of strategy, Pauline McGowan, explained that the decline in ESG prioritisation might not reflect a decrease in concern for these issues. Instead, investors may be looking to support these causes through means other than investment.
Lastly, Christian Barnes, AML’s head of strategy, noted that the current global challenges seem to be increasing investors’ belief in their ability to make investment decisions, adding, “Self-reliance is the new selfishness.”
Source: Fintech Global
Recent Comments