Artificial intelligence is making wealthy individuals more likely to take calculated risks with their finances, new research from HSBC shows.
More than half (51%) of those surveyed by the bank said AI makes them feel more in control, almost double the 26% who said it makes them feel less in control, while 49% said it makes them more willing to take calculated risks.
For one in five (20%), AI is lowering the barrier to entry by making investing feel less intimidating.
The survey of 10,000 affluent and high-net-worth individuals across ten markets found AI was most widely used within finance and investment (73%), ahead of work and career (62%) and personal development (60%).
Younger investors are leading the way, with Gen Z (86%) and millennials (82%) the biggest users of AI for financial and investment decisions.
HSBC said Gen Z mostly use AI to identify potential risks and avoid mistakes (41%), while millennials most often use it to improve the speed of research and analysis (39%).
As well as being the highest adopters of AI, the research found younger investors are also the boldest users of the technology. Gen Z (59%) and millennials (58%) are more willing to take calculated risks, compared to Gen X (41%) and Baby Boomers (40%).
However, while AI is gaining in popularity, the research found it does not remove the need for professional advice. On average, half of respondents say their ideal decision-making approach is hybrid, with AI and advisers working together.
Nearly two-thirds (62%) cited financial professionals and institutions as their main source of investment ideas, compared with 32% who cited AI. That gap widens at the point of commitment, with 37% listing financial professionals and institutions as the most influential factor in their last investment decision, three times more than AI (12%).
Barry O’Byrne, CEO of international wealth and premier banking at HSBC, said: “Clients are increasingly using AI to explore their options but when it comes to making investment decisions, they value judgement, context and accountability from a trusted wealth adviser.”
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