ChatGPT is posing an increasing threat to financial advisers, with more than two fifths (42%) of younger investors aged 18-34 already using the AI chatbot for advice, according to the findings from the Investor Index.
The Index, a survey conducted among 1,100 UK adults by campaign and brand agencies AML Group and The Nursery, also found that 73% of investors believe that ChatGPT could give reliable advice in the future, with over half (54%) of UK investors aged 65 plus agreeing.
While ChatGPT has attracted criticism and approval in equal measure, its popularity continues to grow. The chatbot currently has 100 million users, generating monthly website visits of 1.8 billion.
Robo advisers are also being used by UK investors to make financial decisions, the research found, with 46% stating that they are the future of advice and 34% stating that they would rather use a robo-adviser than a financial adviser.
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.”
The findings also showed that investors are more likely to rely on their own research, with 54% adopting this approach, up 11% on last year. Among those who have never paid for financial advice, 29% believe they can get all the information they need online.
The report also showed that investors are less focused on the ethical, environmental and social impact of their investments than they were 12 months ago. Just over a third (38%) of UK investors in this year’s study stated that ESG investments were important to them, down 6% year-on-year. There has also been a shift in prioritising those investments, with vegan-friendly investments dropping 16% to 22% and LGBTQ+ focused investments dropping 4%.
Pauline McGowan, head of strategy at The Nursery, commented: “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.”
McGowan said areas of greatest interest were new green initiatives and future focused tech solutions like AI and robotics, while there was less belief in the likely return from areas such as vegan and LGBTQ+ friendly investments.
Christian Barnes, head of strategy at AML, added: “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.”
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