Despite AI tools becoming more accessible, almost two thirds (63%) of investors have never used the technology to help with their investments, new research from M&G has found.
According to the firm’s Investor Compass report, just 13% of investors use AI on a regular basis.
However, M&G said the technology is proving popular among advisers, with 75% already using AI. It is mainly used to reduce time spent on administrative tasks, so advisers can focus more on supporting clients and growing their business, the investment firm said.
Ross Liston, chief executive officer at M&G Advice, said: “AI is changing how people access financial information and can help advisers work more efficiently. But faster is not always better when people are making major financial decisions. Good advice often comes through conversation, challenge and reflection, helping clients understand their options and feel confident about the decisions they make.”
Liston said financial advice has never been just about information and whether someone is planning for retirement, supporting family members, or deciding how to pass on wealth, “these are deeply personal decisions shaped by individual goals and circumstances.”
The firm’s Investor Compass found 41% of financial advisers expect demand for advice to increase over the next five years, while 39% expect it to stay the same. In contrast, just 18% expect demand to fall.
Almost all (96%) investors with an adviser say ongoing professional advice is important, while 60% of those without an adviser believe it would improve their long-term financial outcomes.
As financial decisions become more complex, advisers also believe their greatest value lies in helping clients navigate uncertainty. More than half (56%) say advisers provide valuable peace of mind, ahead of tax planning (15%) and investment management (13%).
“AI can support those conversations, but it cannot replace the human judgement and trust that sit at the heart of great advice. That is why professional advice will remain as important as ever in helping people make confident long-term decisions,” Liston added.
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