Key facts
- Most investors do not trust AI to make financial decisions for them, according to Vanguard.
- 57% of surveyed investors are uncomfortable with AI taking action on their behalf.
- AI models, such as DeepSeek, have demonstrated proficiency in stock trading, achieving significant gains.
- Younger generations (Gen Z, millennials, Gen X) show low trust in AI for financial guidance (63% little/no trust).
- Older generations show even lower trust in AI for financial guidance (78% low/no trust).
- AI may increase the perceived value of human financial advisors, rather than replace them.
Despite the increasing capabilities of artificial intelligence and its demonstrated ability to trade stocks, most investors remain hesitant to delegate financial decision-making to AI tools. A survey conducted by Vanguard of over 6,000 investors revealed a significant trust gap, with a majority expressing discomfort with AI taking action on their behalf.
According to Andy Reed, head of behavioral economics research at Vanguard, 57% of surveyed investors stated they were uncomfortable with AI managing their money. This sentiment was consistent across age groups, though trust levels were notably lower among older generations. Among Gen Z, millennials, and Gen X, 63% reported having little or no trust in AI for financial guidance, while only 5%-6% expressed high trust. For boomer and older generations, this figure dropped further, with 78% reporting low or no trust.
This reluctance persists even as AI has shown potential in financial markets. Research by Dr. Alejandro Lopez Lira at the University of Florida indicated that AI models like DeepSeek have achieved substantial gains, outperforming the market. However, Vanguard's data highlights a contrast between investor willingness to experiment with AI and their actual confidence in its financial advice.
The findings suggest that while AI may automate certain tasks and potentially impact the financial advisory sector, it could also enhance the perceived value of human advisors. Reed noted that AI is 11 times more likely to "crowd in" demand for human advice rather than "crowd out" the profession.