Seven In 10 Say It’s “Important” That FAs / RIAs Utilize AI and Emerging Tech

A large percentage of younger high-net-worth (HNW)* individuals say they are AI proficient (82%), use it regularly (56%), and want and expect their investment advisors to “take advantage” of AI, according to a survey of 1,000 wealthy individuals across the U.S. and Canada.

In the survey, conducted by Boosted.ai, an artificial intelligence company that makes finance-specific AI to help automate custom research workflows within investment management, and whose clients manage trillions in assets, 70% of 18-44 year-olds with $100k+ personal income, $300k+ household income, and/or $1 million-plus in liquid investable assets, said it was important for financial advisors to use emerging technologies, like AI.

In fact, younger people were also much more likely than their peers to switch financial advisors if these advisors weren’t using emerging tech: among 18-44 year-olds, 35% said they would consider changing their financial advisor if the advisor wasn’t implementing new tech like AI.

Nearly eight in 10 (79%) young HNW individuals strongly or somewhat agreed with the statement that they would, “like my financial advisor to take advantage of AI tools.” At the same time, 50% of those surveyed – including people across the age spectrum – said they prefer an advisor who employs both traditional methods and AI in managing their money.

“Gen Z and Millennials understand the transformational nature of AI and how it will impact their lives, including their finances,” said Joshua Pantony, Boosted.ai’s CEO. “They’re becoming more comfortable using it, and clearly expect the people they trust with their investments to leverage the technology as well, to help guide asset allocation, manage risk in line with their investment goals, and help close the wealth gap.”

“As we begin The Great Wealth Transfer – over the next 20 years, an estimated $84 trillion will move from Baby Boomers to the younger generations – investment advisors will need to meet the needs of the children and even grandchildren of those Boomers. Being able to harness the power of AI will be part of that,” Pantony added.

Additional key findings from the survey:

• There is a “trust gap” between how younger people view AI compared with Gen X and Baby Boomers. More than six in 10 (63%) younger survey participants said they trust AI to provide reliable answers, versus 51% for those 45-54, 33% for those 55-64 and just 30% for people 65-74.
  
  
  
  
• Across age groups, the biggest concerns regarding trust in AI centered on personal information (68%), lack of regulation (67%) and security concerns (hacking) at 62%.
  
  
  
  
• A larger percentage of people of color agreed with the statement “I’d like my financial advisor to take advantage of AI tools.” Of those who identified as white, 38% agreed with this statement, whereas 53% identifying as people of color agreed.

*Definition of HNW individuals: $100k+ personal income, $300k+ household income, and/or $1 million+ in liquid investable assets.

About Boosted.ai

Boosted.ai is how investment managers work smarter. Through generative AI built specifically for capital markets, Boosted.ai provides analytics across millions of data points, through a macroeconomic, microeconomic and portfolio construction lens, giving asset managers major efficiency gains across their teams. Co-founded by Joshua Pantony, Jon Dorando and Nicholas Abe in 2017, the company and its proprietary web-based platform, Boosted Insights, bring advanced quantitative investing techniques to portfolio managers, without requiring any coding or data science background. Headquartered in Toronto and New York City, Boosted.ai is backed by Portage Ventures, Ten Coves Capital, Spark Capital and other leading investors.

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