Investors still seek a human touch even with AI tools at hand: HSBC

Ippei Naoi | Getty Images Investors continue to rely on professional financial advisers for their final investment decisions, even as artificial intelligence becomes more widely used in the initial stages of research, according to a survey by HSBC. The survey, which polled around 10,000 affluent and high-net-worth individuals across 10 markets, found that 62% use financial professionals and institutions as their main source of investment ideas. About 37% of respondents said human financial experts had the greatest influence on their final investment decisions, three times as many as those who cited AI, according to HSBC. Reassurance and strategic expertise were among the main reasons professional human advisors are preferred for the final decision, HSBC said. Unlike AI, human advisors can apply judgement, validate information, spot mistakes in AI-generated data and interpret complex data, it noted. Still, younger investors are leading the charge for AI adoption. HSBC found that 86% of Gen Z respondents and 82% of millennials surveyed use AI for their financial and investment decisions. However, AI is most commonly used by Gen Z to identify potential risks and avoid mistakes, while Millennials use AI mainly to speed up research and analysis, HSBC found. Although AI plays a limited role in final investment decisions, nearly half of respondents said it has made them more confident and willing to take on calculated risks, especially among Gen Z and Millennials. …