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Consumers turn to AI for investment decisions

Gen Z and millennials the most likely groups to consult chatbots on money matters
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{"text":[[{"start":6.05,"text":"Nearly half of global consumers are turning to AI to help with their savings and investment decisions, according to new research."}],[{"start":13.85,"text":"Some 49 per cent of consumers have used AI over the past six months to support their decisions, while 37 per cent said they would find AI “very” or “extremely” helpful for providing personalised financial advice or automating financial decisions. "}],[{"start":29.25,"text":"The survey by consultancy EY, based on 18,000 people across 23 countries, found that adoption of AI for managing finances is highest among Gen Z, or people born between about 1997 and 2012, with 68 per cent using it for some form of financial management. Millennials — people aged 30-45 — followed closely at 65 per cent."}],[{"start":53.05,"text":"Preetham Peddanagari, EY global financial services AI co-leader, said although uptake of AI is increasing, “it is trust that will determine how far and how fast adoption grows”."}],[{"start":65.14999999999999,"text":"“Financial services firms must earn that trust by putting strong guardrails around AI-driven decisions and demonstrating transparency and accountability,” he added. “The firms that get this right will be best placed to convert growing consumer interest into lasting confidence.”"}],[{"start":80.99999999999999,"text":"Of approximately 1,000 UK consumers questioned, 35 per cent had used AI to support savings and investment decisions over the past six months. About 14 per cent had used AI to protect their personal financial data and 49 per cent believed AI would be helpful to protect against fraud or detect fraudulent activities. "}],[{"start":101.64999999999998,"text":"The most popular tool for people seeking help with money matters is OpenAI’s ChatGPT, according to another study of 5,000 Britons commissioned by Lloyds Banking Group last year. Google’s Gemini was the next most popular. "}],[{"start":115.14999999999998,"text":"But regulators are keeping an eye on developments. The UK’s Financial Conduct Authority launched a review in January to assess how AI could evolve and the potential repercussions for retail investors, regulators, firms and markets."}],[{"start":131.04999999999998,"text":"Andrew Oxlade, investment director at Fidelity International, said: “The opportunity with AI is clear, but the challenge is how it’s being used. Often, people aren’t asking the right or sufficiently broad questions, which means they don’t get a complete or fully reliable answer. "}],[{"start":149.45,"text":"“AI can be a powerful support tool, but it works best when combined with other trusted sources and a more holistic approach to financial decision-making.”"}],[{"start":158.64999999999998,"text":"Fidelity’s global research of 13,000 retail investors across 13 markets suggests that although there is a growing shift towards AI, traditional forms of financial help still dominate. Some 45 per cent of UK retail investors use financial institutions and 40 per cent rely on professional advisers when making investment decisions."}],[{"start":181.45,"text":"Oxlade added that the Fidelity study shows “stronger adoption” of AI in the Asia Pacific region compared with Europe, noting that 30 per cent of investors in Asia had reported using AI tools such as ChatGPT, compared with 21 per cent in Europe."}],[{"start":197.54999999999998,"text":"Holly Mackay, founder and chief executive of Boring Money, a consumer finance website, said: “I think we’ll see continued usage in the short term, but a growing demand for trusted validation as consumers question the accuracy and source of the facts that are being dished up. "}],[{"start":212.45,"text":"“I think AI can do a brilliant job of summarising the rules and calculations, but it’s less good at then suggesting what people should actually do as a result of these.”"}],[{"start":222.5,"text":"She noted that although AI “will get better at a fast pace” it is currently “a useful guide but consumers need to check the facts and seek help from other trusted sources to corroborate and embellish what they’ve learned”."}],[{"start":235.05,"text":"The Financial Conduct Authority said: “We are aware that general-purpose AI tools, such as ChatGPT and Claude, might be used by consumers for advice and support with financial decision-making. "}],[{"start":248.65,"text":"“For general-purpose tools not tailored to financial services, any advice provided is not regulated or covered by the Financial Ombudsman Service or Financial Services Compensation Scheme. We recommend checking other trusted sources when making financial decisions.”"}],[{"start":271.35,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777016610_7892.mp3"}

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