More than half of investors are comfortable acting on financial advice they receive from generative artificial intelligence (AI) systems, so long as those recommendations are vetted by a financial advisor.

The June 2023 survey found that investors from the Baby Boomer and Gen X generations were more open to advice from AI systems like ChatGPT and Google Bard than younger investors, according to a recent survey by CFP Board, the professional body for personal financial planners.

Some 62% of older investors said they were "very satisfied" receiving financial planning advice from generative AI, while only 38% of investors under age 45 agreed.1

These numbers drop off when investors think about acting on that advice, however. Just 8% of younger investors said they were "very comfortable" implementing financial advice exclusively from AI. About double that (15%) of older investors agreed, signaling again that they are perhaps more open to integrating AI into their financial decisions.

Automated financial planning is not new. Robo-advisors have taken much of the heavy lifting out of the process of managing finances for many years, with assets under management by these platforms expected to reach $3 trillion in the U.S. this year.

As AI has enjoyed a rapid rise in prominence across a host of industries, Wall Street firms have increasingly adopted AI tools in their own work to do everything from analyzing client portfolios to identifying potential defaulters and much more.

However, just as many individual investors are cautious about integrating AI into their own practices, even professionals must deal with a constantly shifting landscape. Just last month, the U.S. Securities and Exchange Commission unveiled a new set of rules to rein in the use of AI by brokers and money managers in many cases.

LeackStat 2023