UK investors have expressed confidence in the future of AI and Robo-advisors as reliable sources of financial advice, according to the fourth annual Investor Index survey.
The research, carried out by London-based communications agency AML Group and the research and planning experts, The Nursery, studied the behaviours of 1100 UK adults (18+) who have a minimum of £10,000 invested.
The study revealed that 73% of UK investors believe that ChatGPT, an AI chatbot, could give reliable financial advice in the future. 42% of younger investors (18-34) said they have already used the AI chatbot for advice, while 54% of investors aged 65+ also believe ChatGPT could be the future of financial advice.
Robo-advisors are also being used by UK investors to make financial decisions with 46% stating that they are the future of investing and 34% saying they would prefer to use a Robo-advisor than a financial advisor.
The rise in the cost of living has also galvanised UK investors to seek out better deals, with 69% saying that they were actively ‘shopping around’ and 45% considering financial providers they had not previously heard of.
The research also found that while 72% of all UK investors consider property to be the ultimate investment, 59% of younger investors (18-34) have stated that the cost of living crisis has stopped them from being able to buy a property.
Furthermore, the study showed a significant decrease in younger investors investing to purchase a property – dropping from 38% in 2022 to 24% this year.
In terms of ethical investments, the study revealed that just over one-third of UK investors (38%) now consider ESG investments to be important – down 6% from 2022.
The demographic least focused on ethical investing is those aged 65 and over, with only one-quarter (24%) prioritising ethical investments.
When it comes to financial guidance, the study revealed that 54% of UK investors are more likely to rely on their own research – up 11% from last year. 29% of investors who have never paid for financial advice believe they can get all the information they need online.
Commenting on the findings, Sarah Nunneley, Senior Strategist at AML Group said: “While ChatGPT is currently not regulated, its perceived promise as a source of advice in the future across age groups is remarkable. This is most significant among younger investors – but you would be amiss to dismiss this group as ‘just kids’, this can be people in their late 30s and 40s, with money to invest and confidence in their choices. The ‘new’ generation of investor is already here and they are looking at what is on offer, weighing up their options and it seems Robo-advice and AI are coming up on top.”
Emma Harries, Account Director at The Nursery, added: “Nobody is immune from the cost of living crisis and this is evident across all the research we do. 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 – they cannot rely on experts or the government to do this for them. The sense of control that people crave, has led them to investment as an intriguing way to earn wealth especially for younger investors who increasingly see property as unattainable.”
Pauline McGowan, Head of Strategy at The Nursery, said: “The shift we’re seeing away from ESG priorities can be interpreted in several ways and will be an important trend to watch in the coming years. In qualitative sessions, younger investors told us that they wanted their investments to do good for the world but not at the expense of personal gain.”
Christian Barnes, Head of Strategy at AML, said: “In this, our 4th annual study, we’re seeing the cumulative effect of relentless bad news – pandemic, war, cost of living – in increasing investors’ belief in their ability to make investment decisions – be they prioritising away from ethical for now or simply minimising risk, adding high interest savings accounts or keeping their portfolios the same. Self-reliance is the new selfishness.”
A new study from AML Group and The Nursery has revealed that UK investors are increasingly relying on their own research and opting for AI and Robo-advisors as sources of financial advice. The Investor Index survey, which studies the behaviours of UK adults (18+) who have a minimum of £10,000 invested, found that 73% of UK investors believe that ChatGPT, an AI chatbot, could give reliable financial advice in the future.
The research also showed that the rise in the cost of living has led to UK investors seeking out better deals, with 69
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.