Do People Trust AI with Financial Decisions?
Artificial intelligence (AI) is increasingly becoming part of the financial world, from predicting stock market trends to providing investment advice.
Major institutions like Morgan Stanley and Goldman Sachs are integrating AI to enhance decision-making and reduce biases. However, trust in AI varies widely among individuals, making it crucial for businesses and advisors to understand its role and potential in financial planning.
Research shows that trust in AI depends on factors such as familiarity with the technology, simplicity of the methods used and demographic differences.
People with greater knowledge of AI are more likely to trust its recommendations, while simpler AI techniques are preferred over complex ones, as they are easier to understand. Interestingly, certain demographics also show a higher likelihood of trusting AI than others.
The rise of AI in finance presents opportunities and challenges.
Transparency is key—advisors should clearly communicate how AI is being used and demonstrate its value through proven results. Pairing AI insights with human expertise can also bridge the trust gap, offering clients both the precision of technology and the reassurance of personal guidance.
As AI continues to evolve, its role in finance will grow.
Building trust through education, clarity and a balanced approach will be essential for integrating AI into financial decision-making effectively. Whether you’re seeking advice as an individual or for your business, understanding and navigating this shift can help you stay ahead in an increasingly AI-driven financial landscape.
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