AI makes 64% of affluent Indians more willing to take investment risks: Survey

Artificial intelligence is increasingly shaping the investment landscape for affluent investors in India, as revealed by a recent global survey. Conducted by Ipsos and commissioned by HSBC, the research indicates that 64% of high-net-worth individuals in India are now more inclined to embrace calculated investment risks due to AI, marking the highest rate among the ten countries surveyed. This figure significantly exceeds the global average of 49%, underscoring India's swift integration of AI-driven financial technologies. The survey encompassed 9,993 affluent and high-net-worth investors from various nations, including the United States, United Kingdom, China, and the UAE. Participants classified as affluent possess a minimum of $100,000 in investable assets, while high-net-worth individuals have assets of $2 million or more. As AI-powered platforms become more accessible, investors are utilizing these tools for a variety of financial activities ranging from market analysis to strategic investment planning. Notably, 98% of affluent Indian investors reported using AI, ranking alongside the UAE with the highest adoption rates worldwide. In comparison, AI usage in the UK and US stands at 76% and 75%, respectively. The role of AI in providing investment ideas is also notable; 42% of affluent Indians identify AI-based platforms as significant sources for generating investment insights, surpassing the global average of 32%. Only China reported a higher figure at 48%. Furthermore, Indian investors attribute approximately 40% of their portfolio returns to AI, which is above the global average of 33%. A staggering 90% of investors worldwide acknowledge that AI has contributed positively to their investment performance. Supporters of AI in investing highlight its ability to enhance decision-making. Users report that AI enables better comparison of investment options, a clearer understanding of market trends, and improved confidence in discussions with financial advisers. Despite this technological shift, traditional financial advice remains vital; 67% of affluent Indians still turn to financial professionals for investment guidance, indicating a preference for a hybrid approach that merges AI insights with human expertise. When questioned about the most significant influence on their latest investment choices, 37% attributed it to advice from financial professionals, while only 12% credited AI tools. This suggests that investors are not seeking to replace advisers but rather to integrate AI into their decision-making processes, valuing the unique insights that human advisers provide in strategic planning and reassurance during major financial decisions.