A new survey from HSBC Holdings PLC indicates that artificial intelligence has become a common tool for affluent investors conducting research, but human financial advisors still hold sway when it comes to final investment decisions. The findings, released this month, underscore a division of labor in which AI handles data gathering while professionals provide judgment.
The survey, which polled U.S. affluent investors—defined as those with at least $2 million in investable assets—found that 57% use AI for financial or investment-related tasks. Among those, 51% rely on it for research and analysis, and 40% use it to help develop investment strategies. Nearly a quarter of respondents said they consult AI as a second opinion before making decisions.
Despite this widespread adoption, only 7% of respondents said AI was the most influential factor behind their most recent investment decision. In contrast, 59% credited financial professionals or institutions as the source of their last investment idea. Racquel Oden, head of international wealth management and private banking for HSBC in the U.S., said in a statement that AI has "democratized access to information" but that investors still seek "human judgment, accountability, and personalized advice" for important financial decisions.
The preference for a hybrid approach—combining AI with human advice—was expressed by 38% of U.S. respondents. This model involves using AI to generate ideas or analyze information before seeking professional guidance to validate those findings. The inclination is even stronger among younger investors: half of Generation Z respondents and 44% of millennials favor this combined method for tasks ranging from generating investment ideas to evaluating portfolio performance.
AI adoption skews younger, with 63% of Gen Z and millennial respondents saying AI boosts their confidence and decision support, compared with 31% of Gen X and baby boomers. However, the technology also has a polarizing effect on investor confidence. While 44% of all respondents said AI makes them more willing to take calculated investment risks, and 48% said it helps them feel more in control of their finances, 31% said AI leaves them feeling less in control.
High-net-worth investors, defined by HSBC as those with at least $2 million in investable assets, are among the heaviest AI users. Yet they also show the strongest reliance on professional advice: 67% cited financial professionals and institutions as the source of their latest investment idea, compared with just 16% who pointed to AI. This suggests that even as AI tools proliferate, the value of human expertise remains paramount for the wealthiest clients.
The findings align with other recent research. A BNY Wealth survey found that 96% of ultra-high-net-worth investors use AI weekly, but advisors remain a key human check. Similarly, the HSBC data reinforces that AI is not replacing advisors but rather augmenting their capabilities.
For financial advisors, the survey highlights an opportunity to integrate AI tools into their practices to enhance client service. As former Osaic executive Dimple Shah recently joined Humanity Labs to lead wealth AI adoption, the industry is increasingly focused on how to leverage technology without losing the human touch. Advisors who can effectively combine AI-driven insights with personalized advice may be best positioned to meet client expectations.
