- Report finds 80% of Gen Z investors now trust AI for guidance, 58% would advise more actively
- Artificial intelligence tools are democratizing investing because they are free, cheap and convenient
- Transparency, subpoenas and clear safeguards are still demanded
New data from Opinium has revealed that 80% of Gen Z investors now use AI for investment guidance, putting them well ahead of Baby Boomers (17%) and Gen X (47%).
But younger investors seem to use it much more than for educational reasons, such as explaining terminology or researching investments: they even use it in decision-making.
The report added that nearly three in five (58%) of Gen Z investors would likely use AI to decide where to invest their money. While this is still lower than the total number of younger investors who would use AI, it still means that more than half rely on tools like ChatGPT and Gemini when allocating their money.
Is AI democratizing investing for everyone?
The report also quantifies the generational gap in trust: only 29% of Gen Z investors do not trust information generated by AI, compared to 49% across all age groups. But trust actually increases after users have experienced AI: 72% of users say they trust it.
What the data also implies is that artificial intelligence has made investing more accessible to more people: 43% say they started using AI tools because they were free and 41% valued their speed and convenience.
More than a third (38%) of female investors said they felt more comfortable asking AI than a person compared to 27% of male investors, highlighting the impacts of technology in democratizing investing.
Opinium notes that AI chatbots could help reduce the embarrassment associated with beginners asking basic questions.
Trust is more important than ever when it comes to finances
But when it comes to trusting machines with financial decisions, users still demand high levels of trust. The most frequently cited confidence-building measures include seeking evidence that information is accurate and current (28%), cross-checking it with data from elsewhere (25%), and transparency about the sources used (23%).
“Trust still depends on transparency,” wrote Opinium associate director James Nicandrou. “Investors want to know that information is accurate and easy to verify.”
“As AI becomes more widely used in financial decision-making, it will be crucial to have safeguards and clear signals in place to help people use these tools with confidence and responsibility.”
Overall, the study shows how young people are increasingly starting their investment journeys by asking AI assistants to explain concepts and compare options, but the same trust and responsibility that companies struggle with when trying to implement AI across the organization is also proving to be equally important for the end user.
While precise figures differ, Yonder’s research with the FCA also found that consumers are increasingly using AI for their personal finances: 72% said they use it to summarize and explain information, while 61% ask it to suggest actions on their own behavior.
Previous research from Freetrade also lays the groundwork, noting how 91% of its respondents lacked confidence in investing. One of his suggestions was to improve the education of younger adults, with senior analyst Dan Lane noting that “the biggest advantage you can give to your investments is time.” With the latest trends revealing that younger adults are becoming more familiar with investing thanks to AI, accessibility certainly appears to be improving.
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