Andrew Prosser, head of investments at InvestEngine, said: “Taking the first step into investing can be daunting and it can be difficult to know where to turn for guidance, particularly for younger or less experienced investors. AI can certainly help make financial information more accessible and explain some of the jargon that can put people off.
“But the fact that 44 per cent of less experienced investors mistakenly believe AI-generated financial information is regulated is concerning. There is a big difference between using AI to help you understand something and treating what it tells you as investment advice.
“AI can give very confident-sounding answers, but they may be inaccurate, incomplete or simply not appropriate for your circumstances. More than a third of those surveyed think it’s acceptable to make an investment decision based solely on AI output, which shows why people need to understand those limitations.
“AI can be a really useful starting point, but investors still need to do their homework and make their own decisions. Investing isn’t about chasing quick wins. For most people, it’s about keeping costs down, diversifying and taking a long-term approach.
“The challenge for the industry is to make reliable investment information easier to access and understand, while being much clearer about where information ends and regulated advice begins. AI can be part of that solution, but ultimately its success should be judged by whether it helps people make better-informed decisions.”
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