Over two thirds (69%) of investors would be comfortable with AI being used in the investment advice process, according to a new report.

Over half (54%) of investors would support a blended approach when it comes to investment advice.

However only 15% would be comfortable with the investment process being fully AI driven, according to the research from technology provider Avaloq.

The areas where most would be comfortable with AI being used included the analysis of their portfolio’s performance data (73%), product recommendations (71%), support (54%), and fully AI-driven analysis (19%).

Out of the AI use cases provided, investors were least on board with using AI to answer questions about their portfolio (65%) and using AI for updating personal details (66%).

Investors in Europe and Asia were more receptive to the use of AI than those in the UK. The global average for those willing to use AI for some or all of their approach to financial tasks (74%) was higher than the corresponding score for the UK (69%).

Gery Zollinger, head of data science at Avaloq, said: “Our research reveals that investors are more open to using AI in the investment process but still want the human touch, indicating natural opportunities for wealth managers to integrate AI into their offerings in a way that augments the service they provide.”

“It is vital that financial services firms using AI have a robust monitoring framework in place to identify and rectify any potential shortcomings, including unethical outcomes.”

Avaloq surveyed 3,000 investors aged 18 and above across six European and Asian markets: Germany, Switzerland, the UK, Hong Kong, Japan and Singapore (500 respondents per market).

AI technology could proportionately cut the number of Paraplanners and admin staff working in the profession in future but lead to more Financial Planners being employed, the PFS Annual Conference heard earlier this month.

The predictions came in a session titled 'AI and How We Use It' from innovative Financial Planners Scott Millar, a Chartered Financial Planner, and Rob Schwarz, a Financial Planner.

Both are founders of new tech-based Financial Planning firm Finova Money which they set up using AI tools at the heart of their operation. Both believe that AI could profoundly change the structure of the Financial Planning profession.