80% of Gen Z investors rely on AI for guidance — and risks are growing

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Report finds 80% of Gen Z investors now rely on AI for guidance, 58% would let it advise more actively

AI tools are democratizing investing because they’re free/cheap and convenient

Transparency, citations, and clear safeguards are still in demand

New data from Opinium has revealed 80% Gen Z investors now use AI for investment-related guidance, putting them far ahead of Baby Boomers (17%) and Gen X (47%).

But younger investors seem to be using it much more than just educational reasons, such as explaining terminology or researching investments – they’re even using it in actual decision-making.

The report added nearly three in five (58%) of Gen Z investors would be likely to use AI to decide where to invest their money. While this is still lower than the total number of younger investors who would use AI, it still means more than half are trusting tools like ChatGPT and Gemini with how they allocate their money.

Is AI democratizing investing for everybody?

The report also quantifies the generational gap in trust, with only 29% of Gen Z investors not trusting AI-generated information compared with 49% across all age brackets. But trust actually rises after users have experienced artificial intelligence, with 72% of users noting they trust it.

What the data also implies is that artificial intelligence has made investing more accessible to more people – 43% say they started using AI tools because it was free, and 41% valued its speed and convenience.

More than a third (38%) of female investors said they felt more comfortable asking AI than a person compared with 27% of male investors, highlighting the technology’s impacts in democratizing investing.

Opinium notes that AI chatbots could be helping to reduce the embarrassment associated with beginners asking basic questions.

Trust is more important than ever where finances are invovled

But when it comes to trusting machines with financial decisions, users still demand high levels of trust. The most frequently cited trust-building measures include seeking evidence that the information is both accurate and current (28%), cross-checking it against data elsewhere (25%) and transparency about the sources used (23%).

“Trust still depends on transparency,” Opinium Associate Director James Nicandrou wrote. “Investors want to know that information is accurate and easy to verify.”

“As AI becomes more widely used in financial decision-making, clear safeguards and signposting will be crucial to helping people use these tools confidently and responsibly.”

All in all, the study shows how younger people are increasingly beginning their investment journeys by asking AI assistants to explain concepts and compare options, but the same trust and accountability that enterprises are battling when trying to implement organization-wide AI is also proving to be just as important for the end user.

While the precise figures differ, Yonder research with the FCA also found that consumers are increasingly using AI for personal finances – 72% said they use it to summarize and explain information, while 61% ask it to suggest actions on their behalves.

Earlier Freetrade research also sets the foundations, noting how 91% of its respondents lacked confidence in investing. One of its suggestions was to improve education for younger adults, with senior analyst Dan Lane noting that “the greatest advantage you can give your investments is time.” With the latest trends revealing that younger adults are getting to grips with investing thanks to AI, accessibility certainly looks to be improving.