Most investors believe artificial intelligence (AI) will be revolutionary for financial services, according to new results from Morgan Stanley Wealth Management’s quarterly individual investor pulse survey, released today.
The results reveal insights into how investors view AI and possible investing use cases. The wide majority (72%) believe that AI is a game-changer for investors and traders and nearly three out of four (74%) believe the technology will help financial advisors better serve their clients. In fact, over three out of five (63%) would be interested in working with a financial advisor that leverages AI.
“AI should be viewed not as a replacement of human guidance, but as a powerful tool to help turbocharge a financial advisor’s practice management and client interaction capabilities.”
Jeff McMillan, Morgan Stanley Wealth Management
But the survey also found the vast majority of investors—82%—don’t believe that artificial intelligence will ever replace human guidance. And nearly nine out of ten (88%) agree that the human-to-human FA relationship is extremely important.
“While AI is clearly groundbreaking, and we are just scratching the surface of its potential impact within financial services, this data aligns with an insight we’ve known for some time: The clients who are most engaged with their Financial Advisors are also the most satisfied,” said Jeff McMillan, Head of Analytics, Data and Innovation for Morgan Stanley Wealth Management. “Within this context, AI should be viewed not as a replacement of human guidance, but as a powerful tool to help turbocharge a financial advisor’s practice management and client interaction capabilities.”
The survey found enthusiasm is most pronounced among younger investors. In particular, 35-44-year-old investors over index from the general population in their views that AI will be a game changer (87% vs. 72%), that it will help FAs better serve clients (89% vs. 74%), their interest in working with an FA who leverages it (85% vs. 63%), and their belief that AI will not replace the FA/Client relationship (84% vs. 82%).
“Our goal is to arm our financial advisors with innovative technology that can help them be more efficient in their practices, giving them more time to do what they do best—serve their clients,” said Vince Lumia, Head of Field Management for Morgan Stanley Wealth Management. “It’s encouraging to see excitement for artificial intelligence tools not just within the financial advisor ranks, but among investors as well.”
The research comes on the heels of Morgan Stanley Wealth Management’s recent announcement in which it is developing an internal-facing service that leverages OpenAI technology and Morgan Stanley’s vast intellectual capital to deliver relevant content and insights into the hands of Financial Advisors in seconds, helping drive efficiency and scale.
This wave of the survey was conducted from April 3-20, 2023, among an online U.S. sample of 924 self-directed investors, investors who fully delegate investment account management to financial professionals, and investors who utilize both.
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
