Retail investors put increasing trust in AI to build their portfolio
UK retail investors are putting increasing amounts of trust in AI tools to build their investment portfolio, believing it is able to make more informed decisions.
According to the latest report from investment platform eToro, the number of investors using AI tools has increased by 45 per cent over the last year.
Of the investors opting to lean on AI, 18 per cent used it to pick or alter their investments, up from 13 per cent in 2024.
Millennials were found as the most likely to use AI, with 80 per cent doing so. ButGen Z followed closely behind at 79 per cent.
The surge in young people turning to AI has previously been credited to the growing financial advice gap, with many calling traditional methods overly expensive and inaccessible leading them to look elsewhere.
This was reinforced by over 20 per cent of investors confirming they let AI pick due to it being a cheaper option than asking a fund manager.
Older generations also reported an increase, with the number of Boomers relying on AI rising sharply from 32 per cent to 58 per cent.
Other reasons investors turned to AI included the belief that it would save time on research and that it would pick better options than a fund manager.
Lale Akoner, eToro’s global market strategist said: “AI has taken centre stage across many areas of life, including investing.
“For retail investors, this technology is breaking down barriers by providing advanced analytics or detecting trends, empowering them to make more informed decisions and levelling the playing field.”
Bullish on AI stocks
Investors are also becoming increasingly bullish on AI as an investment option, with over 50 per cent of the 1,000 people surveyed expecting the price of AI related stocks to increase in 2025.
The steady growth of leading companies, including chipmaker Nvidia and tech conglomerate Alphabet, has steered investors to consider adding AI-related stocks to their portfolio.
Akoner said: “Retail investors see AI not just as a tool but as one of the most powerful growth stories in the market.
“With over half expecting prices of AI stock-related stocks to rise in 2025, confidence remains high that the sector will continue to deliver strong performance as companies harness AI to drive efficiency, innovation and profitability.
“While short-term volatility is always possible, the long-term trajectory for AI remains a core conviction theme among investors globally.”
Thirst for knowledge
As investors allow AI to become a pivotal figure across both portfolio planning and purchasing stocks, UK investors are planning to learn more about the applications over the next year.
One in five planned to expand their knowledge on AI, surpassing the desire to learn about crypto assets, blockchain technology, ETFs and investment fees.
Akoner said: “AI technology is still emerging and presents several challenges, such as understanding algorithms, ensuring data accuracy and integrating these tools into their strategies.
“These pain points are precisely why so many retail investors are eager to deepen their knowledge about AI.”