1 in 10 investors use Chat GPT style AI to support their investment decisions

One in ten (11%) of individual investors use tools artificial intelligence (AI) such as ChatGPT to help you choose and change investments in your portfolio, as data from the latest research showsnia Individual Investor Pulse investment platform eToro.

In a nutshell:

• 11 percent of individual investors use artificial intelligence to manage their portfolios, and among those aged 34-44, this percentage increases to 19%.

• Another 35 percent are open to the idea of ​​​​using artificial intelligence, while 40 percent. is against it.

• Reasons for using AI to manage investments include time savings and better decision-making in the first place.

Artificial intelligence used by retail investors

The survey of 10 individual investors in 000 countries also showed that another 13% of global individual investors are open to the idea of ​​using technology to support their investment decisions, while one in four (35%) is strongly against it. 

These findings follow a explosive eight months for artificial intelligence. The launch of ChatGPT last November heralded massive interest and investment in the sector. 

Of the 46 percent of individual investors who already use ChatGPT-style tools or are open to the idea of ​​​​using them, the majority (61%) would even go so far as to allow artificial intelligence to perform transactions for them in the future. 

The data also showed that it is not the youngest or least experienced investors who are most likely to use artificial intelligence, but the generation ahead of them with more years of investing behind them. One-fifth (19%) of 35-44 year olds already use the technology to support their investment decisions, compared to 16% of those aged 3-10 who do so. investors with XNUMX-XNUMX years of experience.

Commenting on the data, Ben Laidler, Global Markets Strategist at eToro, He said:

Consumer AI tools take note fastest growth of all technologies in history, and it is no surprise that the first users are starting to use them for investing. These older, wealthier and more seasoned investors are pioneering use cases in investing, from basic research to stock selection, which are increasingly being followed by others. But the technology is far from flawless, and an early example ETF based on artificial intelligence performs much worse.

Table: How individual investors of different age groups are adopting ChatGPT-style tools to help manage their investments

When individual investors were asked why they wanted to use AI, the most frequently cited answer was that AI is the future of investing (43%). Other frequently cited reasons include the belief that AI can save time on research (42%) and make better decisions (34%). A significant number (30%) also believe that artificial intelligence can choose better investments than a fund manager.

While the newest Individual Investor Pulse from eToro highlighted that many individual investors are ready to embrace technology, the survey also showed that they are very optimistic about the tech sector in general. When asked in which sectors are most likely to increase their investments by the end of 2023, 30 percent. indicated technology, and more than a third of this group (13%) indicated artificial intelligence specifically.

Ben Laidler adds:

AI and tech stocks have been a performance giant that has propelled global stocks back into the bull market this year. These continued signs of AI adoption and individual investor confidence in the tech sector clearly demonstrate the fundamentals behind much of this recovery. NVIDIA has begun to transform some of that hope in AI into the reality of higher revenues. This needs to be continued and extended across the sector to support the massive gains seen in the stock market.