The Rise of Artificial Intelligence in Investing
Gen Z and AI Investment Tools
An increasing number of younger investors, especially Gen Z, are using artificial intelligence for investment advice. A survey by BMO Financial Group reveals that 61% of Gen Z prefer AI over traditional advisors. This trend marks a significant shift in how financial decisions are made.
Shane Stewart, a certified financial planner, acknowledges this shift but highlights its limitations. He points out that while there is a lot of science involved in investing, the emotional aspect is equally important.
“The art of investing includes handling emotions during market fluctuations,” Stewart explains.
Emotional Coping in Financial Planning
According to Stewart, relying solely on AI might lead to poor decision-making during market extremes. Emotions play a crucial role in guiding investors through both downturns and upturns.
“A human advisor provides invaluable support during market downturns, balancing emotional responses,” Stewart adds.
Tech-Savvy Generation and Trusted Sources
Gen Z’s tech-savviness is undeniable. However, Stewart emphasizes the importance of turning to trustworthy sources for financial advice. He notes that while this generation might currently overlook the value of human advisors, they might seek professional advice as they accumulate more wealth.
“In middle age, people tend to seek advisors to handle larger financial portfolios,” says Stewart.
The Complementary Role of AI
Stewart is optimistic about the role of AI in investments. He likens it to using WebMD for initial diagnoses before consulting a doctor.
“AI can provide preliminary insights, but human advisors offer actionable strategies,” Stewart suggests.
The Importance of Verification
Stewart advises caution when sourcing financial advice from social media platforms like TikTok. He warns that not all influencers are qualified to give financial guidance.
“Verify the qualifications of those offering investment advice on social media,” he recommends.
Conclusion
As AI continues to revolutionize financial planning, a balanced approach combining both AI tools and human advisors could lead to more robust financial strategies. Investors should remain vigilant and verify their sources of information to ensure financial success.
For Further Reading
- Artificial Intelligence in the 2024 U.S. Elections
- Canyons School District Embraces AI Technology on Buses
- New AI Rules for the EU
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This content provides a detailed look at the emerging trend of using artificial intelligence for investment purposes, stressing the importance of combining technology with human wisdom for better decision-making.