41% of Gen Z and Millennials Trust AI for Investing, Says WEF Survey

Artificial intelligence is no longer just a futuristic concept—it is actively reshaping the world of finance. According to a recent survey by the World Economic Forum (WEF), 41% of Gen Z and Millennials are willing to let AI manage their investments. This signals a major shift in how younger generations approach financial decision-making, prioritising efficiency, lower costs, and personalised insights over traditional human advisors.

Why Do Younger Investors Prefer AI?

The growing trust in AI-driven investing is fuelled by several factors. Modern AI-powered financial tools offer automation, real-time market analysis, and algorithm-driven recommendations tailored to individual risk profiles. Younger investors, who have grown up in a digital-first world, see AI as an accessible and reliable alternative to conventional financial advisors.

A key finding from the WEF Global Retail Investor Outlook 2024 indicates that in emerging markets, AI-driven investing is even more popular, with 48% of investors across all age groups open to using AI for financial decision-making. The convenience, accessibility, and cost-effectiveness of AI tools make them an attractive option, especially in regions with limited access to professional financial services.

Changing Investment Habits Among Gen Z

AI adoption is not the only transformation taking place in the investment landscape. The WEF survey highlights a broader generational shift in financial habits:

• 30% of Gen Z started investing in early adulthood, compared to just 9% of Gen X.
• 86% of Gen Z enter the workforce with basic knowledge of investing, whereas only 47% of Boomers had such financial awareness at the same stage.
• Retail investors are prioritising emergency savings over retirement, reflecting economic uncertainty and changing financial priorities.

These trends indicate that younger generations are more financially aware and proactive, leveraging AI to make informed investment decisions.

AI’s Growing Influence in Financial Markets

As AI continues to evolve, its role in financial markets is expanding. AI-driven robo-advisors, predictive analytics, and automated portfolio management tools are becoming increasingly sophisticated, allowing investors to navigate volatile markets with greater confidence.

Previously, professional financial advice was costly and often reserved for high-net-worth individuals. Today, AI-powered platforms offer personalised guidance at a fraction of the cost, opening up investment opportunities.

Potential Risks and Challenges

While AI-driven investing offers numerous advantages, it also comes with risks. Over-reliance on algorithms may lead to unforeseen market fluctuations, and AI models are not immune to biases or errors. Investors must remain cautious, ensuring they understand the underlying mechanisms of AI-driven investment tools before entrusting their financial future to technology.

Moreover, regulatory frameworks governing AI in finance are still evolving. Policymakers are working to establish guidelines that ensure transparency, accountability, and ethical use of AI in investment decisions. Until then, investors should balance AI-driven strategies with human oversight to mitigate potential risks.

Conclusion

The increasing trust in AI-driven investing underscores a fundamental shift in how people perceive financial management. As AI technology advances, its capabilities in risk assessment, portfolio optimisation, and real-time market analysis will only improve.

For Gen Z and Millennials, AI is more than just a tool—it is a trusted financial partner. While it remains to be seen whether AI-driven investing will redefine the financial landscape permanently, one thing is clear: the next generation of investors is ready to embrace the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.