The rise of AI hasn’t replaced the financial advisor. Instead, it appears to have created a new division of labor: artificial intelligence does the research, while humans make the judgement call.
A new HSBC survey found that 57% of U.S. affluent investors use AI for financial and investment related tasks, primarily for research and analysis. Yet only 7% said AI was the most influential factor behind their most recent investment decision, while 59% credited financial professionals or institutions as the source of their last investment idea.
The findings suggest AI is increasingly viewed as a tool for gathering information rather than a replacement for personalized financial advice.
“AI has democratized access to information, providing investors a valuable tool to help explore financial and investment options,” Racquel Oden, head of international wealth management and private banking, U.S. at HSBC, said in a statement. “However, our survey findings confirm that when it comes to making important financial decisions, investors primarily look to financial professionals and institutions for human judgment, accountability, and personalized advice.”
Among respondents using AI, 51% said they rely on it for research and analysis, while 40% use it to help develop investment strategies. Nearly one-quarter said they use AI as a second opinion before making decisions.
Rather than choosing between technology and human advice, many investors appear to want both. Thirty-eight percent of U.S. respondents said their ideal approach combines AI with a financial advisor, using AI to generate ideas or analyze information before seeking professional guidance to validate those findings.
That preference is even stronger among younger investors. Half of Generation Z respondents and 44% of millennials said they favor a hybrid approach across a range of financial tasks, including generating investment ideas and evaluating portfolio performance. AI adoption also 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.
The survey also found AI is shaping investor confidence, though not always in the same way. Forty-four percent of U.S. respondents said that AI makes them more willing to take calculated investment risks, while 48% said it helps them feel more in control of their finances. At the same time, 31% said AI leaves them feeling less in control.
Read more: Clients expect to know if you use AI, but don’t realize that their portfolios are likely exposed
High-net-worth investors, defined by HSBC as those with at least $2 million in investable assets, were among the heaviest AI users. Still, they also showed the strongest reliance on professional advice, with 67% citing financial professionals and institutions as the source of their latest investment idea, compared with just 16% who pointed to AI.
The findings indicate that AI is complementing – not replacing – financial advisors, with investors continuing to seek human guidance before making major portfolio decisions.
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