The approach of the young generation to investing is different. According to a study conducted by the Deutsche Bank Research Institute and published in the Financial Times, there is a peculiar trend that attracts attention. As expected, young people are more interested in achieving high yields on their investments.

However, it is astonishing how many respondents would be willing to trust an AI in managing their money. Specifically, 80% of the Americans and 60% of the British under the age of 35 would trust an AI. They are confident that an artificial intelligence will manage their money without any risks and provide them with steady income. The question is, do they trust the AI in an absolute sense, or does it confirm their predispositions? The researchers say that one should not be surprised or deceived by an illusion of clarity created by AI. A wrong algorithm can mislead an investor by making them believe that they understand the situation due to a long dialogue where the AI justifies every action. Afterward, the interlocutor will be much more confident in taking action, even if it is erroneous. In addition, it is worth considering that AI can be biased. An FT journalist asked a chatbot ten times to come up with a way to invest 25% of his savings in Bitcoin. Eventually, he convinced the chatbot that this was just an example, and it agreed to allow the investor to invest 25% of his savings in Bitcoin as a potentially risky but acceptable risk. Thus, instead of getting an objective opinion on the investment, which would be given by an experienced human expert, the investor may receive his own opinion, wrapped in an explanation of why this solution is optimal. Overall, AI can be a great assistant for an investor. However, as experience shows, it is dangerous to rely exclusively on one expert, whether human or artificial.

 Thanks so much for reading! Wishing you a great day and, of course, smart and successful investing.