The majority of UK investors are comfortable with AI being used in the investment process, according to Avaloq, a global leader in digital banking solutions and wealth management technology. That includes more than two thirds (69%) of investors who would accept AI support in providing investment advice.

The study was conducted among 500 UK investors. As the UK Government’s AI Safety Summit begins, it reveals that while most investors are comfortable with AI being used across a range of financial tasks, they prefer a blended approach with human involvement over full delegation to AI. When it comes to investment advice, more than half of UK investors (54%) would support a blended approach, versus just 15% who are comfortable with the process being fully driven by AI.

Avaloq’s research found that 73% of UK respondents would be comfortable with AI being used in the analysis of their portfolio’s performance data, with 54% happy to receive support from AI versus 19% who said they would accept fully AI-driven analysis.

Looking into investor’s preferences for AI further, Avaloq found that 71% are comfortable with AI being used to provide product recommendations based on their investment behaviours and changes in situation, a rise of 8 percentage points since 2022. But again, investors favour a blended approach incorporating both AI and the human touch (56%) to an approach fully driven by AI (16%). Out of the AI use cases provided, investors were least on board with using AI to answer questions about their portfolio (65% comfortable) and using AI for updating personal details (66% comfortable).

Avaloq also surveyed a further 2,500 investors from five additional markets in Europe and Asia and found that they are more receptive to the use of AI than those in the UK. The global average for those willing to use AI for some or all of their approach to financial tasks (74%) was higher than the corresponding score for the UK (69%). UK investors are also less likely to cede control to AI; across the different use cases, 22% of global investors would accept an approach fully driven by AI, compared to 18% in the UK. 

Gery Zollinger, Head of Data Science at Avaloq, says: “Our research reveals that investors are more open to using AI in the investment process but still want the human touch, indicating natural opportunities for wealth managers to integrate AI into their offerings in a way that augments the service they provide.”

“Scepticism over full delegation to AI and the issues that will be highlighted at this week’s AI Safety Summit offer pause for concern and highlight the importance of the financial sector fully understanding the risks associated with AI – as well as the need for effective regulation to ensure that AI does not compromise investor safety.”

“It is vital that financial services firms using AI have a robust monitoring framework in place to identify and rectify any potential shortcomings, including unethical outcomes.”