Investors still seek a human touch even with AI tools at hand: HSBC
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Even as AI becomes more widely used in the early stages of research, investors continue to rely on professional financial advisors for final investment decisions, according to a survey by HSBC.
The survey of nearly 10,000 wealthy and high-net-worth individuals across 10 markets found that 62% of respondents use financial professionals and institutions as their main source of investment ideas.
According to HSBC, nearly 37 percent of survey respondents said human financial experts have the greatest influence on their final investment decisions; This rate was three times higher than those who mentioned artificial intelligence.
HSBC said assurance and strategic expertise were among the main reasons for choosing professional human advisors for the final decision. Unlike AI, human advisors can apply judgment, verify information, detect errors in AI-generated data, and interpret complex data.
Still, young investors are leading the way in AI adoption. HSBC found that 86% of Gen Z respondents and 82% of Millennials surveyed use AI in their financial and investment decisions.
However, HSBC found that AI is used most by Generation Z to identify potential risks and avoid mistakes, while Millennials use AI mostly to speed up research and analysis.
Although AI plays a limited role in final investment decisions, nearly half of survey respondents said it has made them more confident and more willing to take on calculated risks, especially among Gen Z and Millennials.
Looking across markets, HSBC found that this effect was more pronounced in Asian and Middle Eastern regions such as India, the United Arab Emirates, Malaysia and Hong Kong. On the other hand, investors in the US, Singapore, Taiwan and the UK were “more measured in their approach”.
“Customers are increasingly using AI to explore their options, but when it comes to making investment decisions, they value the judgment, context and accountability of a trusted wealth advisor,” said Barry O’Byrne, CEO of HSBC International Wealth and Premier Banking.
