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HSBC research shows that even though artificial intelligence has become more widely used in the early stages of research, investors continue to rely on professional financial advisors to make final investment decisions.
The survey, which surveyed nearly 10,000 HNWIs and HNWIs across 10 markets, found that 62% use financial professionals and financial institutions as their primary source of investment ideas.
According to HSBC, around 37% of respondents said human financial experts have the most influence on their final investment decisions, three times more than those who cited AI.
HSBC said that peace of mind and strategic expertise are among the main reasons why professional human advisors are preferred in making final decisions. Unlike AI, human advisors can make judgments, verify information, spot mistakes in AI-generated data, and interpret complex data, the report said.
Still, young investors are at the forefront of AI adoption. HSBC found that 86% of Gen Z respondents and 82% of Millennials surveyed use AI for financial and investment decisions.
However, HSBC found that AI is most commonly used by Gen Z to identify potential risks and avoid mistakes, while Millennials primarily use it to speed up research and analysis.
Although AI plays a limited role in final investment decisions, nearly half of respondents say artificial intelligence has made them more confident and willing to take calculated risks, especially among Gen Z and Millennials.
Broken down by market, HSBC found that the impact was more pronounced in parts of Asia and the Middle East, including India, the United Arab Emirates, Malaysia and Hong Kong. Meanwhile, investors in the US, Singapore, Taiwan and the UK “took a more cautious approach”.
Barry O’Byrne, CEO of International Wealth & Premier Banking at HSBC, said: “Customers are increasingly using AI to explore their options, but they value the judgment, context and accountability of a trusted wealth advisor when making investment decisions.”
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