UK investors are increasingly relying on self-reliance and AI-driven advice for their financial decisions, according to findings from the Investor Index – an annual study of UK investors conducted jointly by London-based communications agency AML Group and the research and planning experts, The Nursery.
The study, which surveyed 1,100 UK adults (18+) with a minimum of £10,000 invested, revealed that 73% of investors believe ChatGPT, a global AI chatbot, could give reliable financial advice in the future. Younger investors (18-34) are leading the way with 42% already using the technology for guidance, while 54% of those aged 65 and over also believe that ChatGPT could be the future of financial advice.
Robo-advisors are also being used by investors to make financial decisions, with 46% of respondents stating that they are the future of investing and 34% saying they would prefer to use a Robo-advisor than a financial advisor.
The research also found that the cost of living crisis has had a significant effect on investors. 59% of younger investors (18-34) noted that the crisis has stopped them from being able to purchase property, while 69% of respondents said they were actively ‘shopping around’ for better deals.
In addition, a shift away from ethical investing was observed, with 38% of UK investors considering ESG investments important – down 6% from last year. The demographic least focused on ethical investing is those aged 65 and over – with only one-quarter (24%) prioritising ethical investments.
Self-reliance is also on the rise, with 54% of investors adopting a self-reliant approach when it comes to financial guidance – an increase of 11% from last year. 29% of investors who had never paid for financial advice stated that they could 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.”
Christian Barnes, Head of Strategy at AML, concluded: “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.”
Today’s UK investors are increasingly turning to self-reliance and AI-driven advice when it comes to making financial decisions, according to a study by London-based communications agency AML Group and research and planning experts The Nursery.
The Investor Index, an annual survey of 1,100 UK adults (18+) with a minimum of £10,000 invested, revealed that 73% of investors believe AI chatbot ChatGPT could give reliable financial advice in the future. 42% of younger investors (18-34) have already used the technology for guidance, while 54% of those aged 65 and over also believe it 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 that they would prefer to use a Robo-advisor than a financial advisor.
The study also found that the cost of living crisis has had a significant effect on investors. 59% of younger investors (18-34) noted that the crisis has stopped them from being able to purchase property, while 69% of respondents said they were actively ‘shopping around’ for better deals.
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