A recent survey conducted by Chartered Accountants ANZ has highlighted a significant change in how Australians approach their finances, particularly among retail investors. The Australian Retail Investor Confidence survey revealed that nearly 50% of individual investors, colloquially referred to as “mum and dad” investors, are now turning to artificial intelligence (AI) platforms, such as ChatGPT and Co-Pilot, for investment guidance.
This survey marks the first time that the use of AI by a sample of 1,000 Australian investors has been officially explored. The results indicate that 48% of respondents employ AI tools to inform their investment decisions. Ainslie van Onselen, CEO of Chartered Accountants ANZ, remarked on the rapid adoption of AI, noting that it’s intriguing to see retail investors leveraging technology for their financial strategies.
The trend is particularly pronounced amongst younger demographics, with a remarkable 78% of individuals aged 18-29 utilising AI in their financial planning. Additionally, there is a noticeable gender disparity in AI usage, with 15% of male investors relying heavily on these technologies compared to 9% of female investors.
Despite the growing trend, trust in AI remains a significant barrier. Approximately 43% of those surveyed express hesitance in using AI due to concerns about the accuracy of its information, while 46% prefer traditional financial advice sources. This underscores the ongoing need for reliable, human-verified financial information. Van Onselen noted that investors generally have a high level of confidence in qualified professionals, particularly auditors, whom they regard as vital protectors of their financial interests.
The survey findings reveal a four-point increase in confidence towards audited financial statements, now at 54%. Despite global economic uncertainties, investor confidence in the Australian market appears to be rising, attributed to the strength of the domestic economy. Professor Richard Holden, Chief Economist at CA ANZ, pointed out that investor confidence in Australian capital markets has significantly increased at a time marked by global instability, further buoyed by assurance in auditors and reliable financial reporting.
Moreover, the survey indicated a six-point rise in investor confidence regarding Australian companies, with 42% linking this boost to the recent federal election. However, caution persists regarding overseas investments, with confidence in international markets declining from 78% to 73%.
The integration of AI is not limited to retail investors. A global report by Chartered Accountants Worldwide and Ipsos UK highlights that 79% of chartered accountants believe their roles as “data guardians” will become increasingly significant with the advancement of AI in business. The report also found that 83% of young professionals aged 18-24 are using AI tools weekly for various tasks, from data entry to risk management.
In conclusion, the rising reliance on AI in financial decision-making among Australians indicates a transformative shift in investment strategies, yet trust in these technologies and the continued value of human expertise remain critical concerns for investors.