Retail investors turning to AI tools for financial decisions

Retail investors are increasingly turning to generative artificial intelligence (AI) tools to help them make investment choices, analysis from Fidelity International has shown.

Its Be Invested Global Study found that 23 per cent of UK retail investors were using generative AI tools, such as ChatGPT, to support financial decisions.

The trend was particularly prominent among younger people, reflecting a broader shift towards digital and social media sources of financial information.

More than a third (36 per cent) of UK retail investors aged between 18 and 34 were using AI to support investment choices, compared to 29 per cent of those aged 35-54 and 5 per cent of over-55s.

Investors were also found to be turning to online communities and social platforms for financial information, with 17 per cent using online forums such as Reddit, while 15 per cent used social media and influencers.

Both figures represented an upward trend compared to Fidelity’s study last year, which showed 11 per cent used investment influencers and 9 per cent used forums.

More than half (56 per cent) of UK retail investors have used some form of social media platform to inform a financial decision in the past two years.

Despite the rise in digital and more informal sources, 45 per cent of investors still rely on financial institutions such as banks, pension providers and asset managers for information, and 40 per cent still turn to mainstream media.

Furthermore, professional financial advice continued to play a key role, with 40 per cent of respondents using an adviser or wealth manager.

“The way people seek information about their finances is evolving at remarkable speed,” commented Fidelity International head of investment product for global platform solutions, Georg Bauer.

“The rise of AI tools - particularly among younger investors - is changing how individuals research, plan and make decisions about their futures.

“At the same time, we know there is a clear advice gap in the UK - compounded further by the challenges many face in navigating the financial planning landscape, with complex rules and regulations to consider.

“Many people are trying to equip themselves with the knowledge to make good financial decisions, but the quality and reliability of online information varies widely.

“Some of these sources are authorised and trustworthy, but others are not, which creates a real risk of misunderstanding and poor outcomes.”

Bauer said this was why it was important for financial institutions to be empowered to do more to support consumers, with measures such as the targeted support regime enabling providers to offer clearer nudges and guidance at key moments.

“Consumers must have access to consistent, scalable and trusted support,” Bauer added.

“By combining high‑quality guidance with the right regulatory framework, we can help ensure people feel confident and informed - whether they are using traditional advice channels or exploring new digital tools.”

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