Gen Z, Millennial Investors Show "Big Demand Shift" in A.I.

Summary

In a discussion on the generational divide in AI adoption, Josh Pantoni, CEO of Boosted, highlights a recent survey revealing that 68% of individuals aged 18-44 use AI weekly, compared to lower rates among older demographics. The younger generation shows a high trust in AI (62%), expecting their wealth managers to incorporate technology in stock investing. While younger users primarily worry about job loss, older generations are more concerned about privacy and data security. This disparity is attributed to the younger generation's familiarity with technology and the normalization of sharing personal information in the digital age.

Takeaways

• 😀 Younger individuals (ages 18-44) are significantly more likely to use AI for investment decisions, with 68% using it weekly.
• 😀 Trust in AI is notably higher among younger users, with 62% expressing confidence in its capabilities, compared to just 32% of those aged 45 and older.
• 😀 A strong expectation exists among younger investors for their wealth managers to utilize AI, with 79% wanting this integration.
• 😀 Approximately 35% of respondents indicated they would consider switching wealth managers if their current advisor does not use AI in investment strategies.
• 😀 The survey highlights a generational divide in concerns about AI; older adults prioritize privacy and security, while younger users focus more on job displacement.
• 😀 Younger individuals have normalized sharing personal information online, making them less concerned about data privacy compared to older generations.
• 😀 There is a substantial gap between the technological capabilities of current investment managers and the expectations of younger, tech-savvy clients.
• 😀 The transfer of wealth to younger generations emphasizes the need for wealth managers to adapt and incorporate AI into their practices.
• 😀 The integration of AI is seen as essential for informed investment decisions, as younger investors expect advanced insights and analysis.
• 😀 Overall, the findings indicate a pressing need for the finance industry to evolve and embrace AI to meet changing client expectations.

Q & A

What is the primary focus of Boosted, the company mentioned in the transcript?

Boosted is a generative AI company focused on professional investment managers.

What percentage of individuals aged 18-44 reported using AI weekly?

68% of individuals aged 18-44 reported using AI at least once a week.

How does trust in AI differ between younger and older generations according to the survey?

62% of individuals aged 18-44 trust AI, while only 32% of those aged 45 and older express the same level of trust.

What expectation do younger investors have regarding their wealth managers and AI?

79% of younger respondents expect their wealth managers to incorporate AI into their investment strategies.

What is the consequence for wealth managers who do not use AI, according to the survey?

35% of respondents stated they might consider switching wealth managers if their advisors do not use AI.

What were the primary concerns regarding AI for younger respondents?

Younger respondents primarily expressed concerns about job loss due to AI.

What concerns did older respondents have regarding AI?

Older respondents were more concerned about privacy and the loss of personal information.

Why might younger generations be less concerned about personal information security?

Younger generations have grown up with technology and social media, which may have normalized the sharing of personal information for them.

What trend is seen regarding wealth managers' adaptation to AI?

The segment of wealth managers using AI has reportedly tripled over the past few years, indicating a growing adaptation to AI in investment practices.

How do younger investors feel about their informational base when using AI?

Younger investors believe that using AI increases their understanding of stocks and market conditions, raising their expectations for the quality of advice from wealth managers.