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AI as an Investment Tool: A Retail Perspective

AI as an Investment Tool Report by Lansons New York

Financial advisors have a growing opportunity to leverage AI to develop investment solutions, but retail investor trust in AI remains divided – our recent study finds.

NEW YORK – For more than a decade, retail investors have found themselves navigating a constant push-and-pull between technology-powered investment advice and the enduring value of human expertise.

Following the 2008 financial crisis, when trust in traditional financial institutions faltered, robo-advisors emerged as a compelling alternative to human judgement. However, the aftermath of the COVID-19 pandemic and 2022 tech correction soon triggered a sharp reversal in robo-advisor adoption.

Nonetheless, emerging technologies including AI continue to gain traction in financial advisory – increasingly as a complement to, rather than a replacement for, human insight.

Today, U.S. retail investors remain divided on whether they trust AI to provide advice and recommendations, according to our recent survey, conducted by Opinium.

The survey found that only 28% of investors trust the accuracy of AI-generated financial recommendations, and only 26% of investors are more likely to invest on a platform that uses AI, while 40% say they are not.

Download the report + to explore the insights and opportunities, reshaping the future of retail investing.

“While AI may be able to support portfolio decisions and help generate alpha, it’s unlikely to replace the trusted relationships advisors build with clients over years… Understanding how investments fit into a client’s broader financial picture, and using emotional intelligence to guide difficult decisions, is still a job best suited for humans.”

James Schiavone
James Schiavone
Head of Operations, Lansons New York

“At a time when overconcentration in the ‘Magnificent 7’ tech stocks is top of mind for many investors, the rise of AI tools may further amplify herding behavior… AI-driven portfolio management doesn’t inherently create an advantage, it simply speeds up how quickly markets absorb and react to information, and any edge can be quickly arbitraged away. The real differentiator won’t be AI itself, but how firms apply and adapt it to serve a clear strategic purpose.”

David masters
David Masters
Director at Lansons and Podcast Host of 'misConduct, Money & Reputation'

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Survey of Retail Investment U.S.

AI as an Investment Tool: A Retail Perspective

Methodology

Lansons partnered with strategic insights agency Opinium to conduct a nationally representative survey of 2,000 Americans. The survey was weighted using the latest figures from the U.S. Census Bureau. The study was conducted from September 26th, 2024, to October 1st, 2024.

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