Younger generations are turning to artificial intelligence for investing advice

Sep 19, 2024, 5:00 PM

As more members of Gen Z turn to artificial intelligence for investing advice, an "old school investor" offers suggestions. (Getty Images)

(Getty Images)

BY DON BRINKERHOFF

Reporter/Producer

SALT LAKE CITY — Many younger investors are turning to artificial intelligence rather than a traditional advisor for their investing needs. According to the BMO Financial Group, 61% of the members of Gen Z are turning to artificial intelligence to get investing advice.

Some say using artificial intelligence as an investing tool isn’t a bad idea. But certified financial planner Shane Stewart with Deseret Mutual Benefit Administrators said there is a limitation.

There is a lot of science to [making financial decisions], but there’s also an art and the art is the emotional part,” he said. “The coping part. The getting through down times, getting through even up times.

“You could behave poorly in an uptime if you’re not careful. So having the combination of the two is a very powerful way to be successful in investing in finances.”

Gen Z is a “more tech-savvy age group” Stewart said, adding that he hopes they turn to a trusted source.

“They don’t rely on other people as much, [but] they will. And what I mean by that is a generation ago, we were not relying on advisors very heavily. Then they got into their middle-ages [and] later in their career [and had] more money to deal with and thought, ‘oh, I better get an advisor to make sure I’m doing this correctly.'”

Most important time to use a financial advisor?

Stewart suggests using an advisor, especially when the market is down.

“When the markets are up, you can do just fine with the tool on your own, [but] when the markets are down, [or] the economy goes bad, or the markets are down for significant amount of time, it’s extremely helpful to have a counselor, an objective third party, who is actually a human being who has emotions and can help you cope with that. Get through that. Stick to a strategy.”

He says there is another thing to consider when using technology to make investment choices.

“Be careful who you take the advice from. Now more than ever I hear, ‘I saw on TikTok,’ and I’m thinking, ‘oh what qualifies that person on TikTok?’ Many times, I’ll look on TikTok and think, ‘oh that person’s not even qualified.’ They’re just a good TikToker.”

Stewart says he’s not worried that AI will replace him. He suggests using artificial intelligence for investments is similar to using Web-MD to diagnose an illness. After learning what something may be, people still turn to a human doctor for treatment.