For 80 percent of Americans, AI unlocks one of life’s biggest decisions

In today’s volatile market, every investor’s nest egg is on the line, so it’s no surprise that 80 percent of Americans believe that personalized advice will help them meet their financial goals. Because they don’t just want DIY instructions, AI could be the key to unlock their goals.

A new AI assistant at our fingertips

Today, AI seems imbued with superpowers—saving lives, saving the planet, saving profits. But in the age of Alexa, Siri, chatbots, and AR, most of the time we use it to play the music we love, score the purchases we want, and access the information we need. AI’s so familiar that we’ve gotten accustomed to providing it with personal details we’d never share with strangers on the street, like credit card numbers and passwords. For many of us, it’s hard to imagine how we’d get through our days without AI algorithms prompting, suggesting, and completing so many of our activities on our laptops, phones, smartwatches, and more. What would we ever do without such an ever-ready assistant?

The better question is, what else can we do with such an assistant? Now with AI, we can actually get through one of life’s biggest decisions—investing—without so much worry.

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Intelligent guidance for intelligent outcomes

Buying a house, changing a career, putting money away for the future—these are BFD life decisions, so no wonder people scour the internet for advice, ask family and friends, and, if they can afford it, pay an expert for advice.

One of the most intimidating big life decisions is investing, which about 7 in 10 Americans readily admit. Nevertheless, more than half of Americans invest, whether in retirement savings, stocks, or bitcoin. The recent survey by Magnifi found 80 percent of Americans feel personalized guidance will lead to better financial outcomes, yet here’s the problem: not all of these investors will get the guidance they want.

Only 41 percent of investors have a financial advisor. Almost half of the investors who don’t have an advisor report they’d love to get that level of personalized guidance, but it’s too expensive. Meanwhile, most investors say they’re open to using robo-advisors, but only 1 percent actually use them. That adds up to a lot of people who feel they have little chance of meeting their financial goals.

Focusing on investors themselves is crucial. After all, people increasingly expect personalized services and products, with companies catering to their unique needs. The experience of feeling valued is important, so it makes sense that choosing a robo-advisor isn’t at the top of investors’ lists.

With personalized guidance, authoritative data and market insights make sense, whether you’re a seasoned or novice investor. And if everything comes at an affordable price, even better.

When it comes down to it, today’s hands-on investors are just turned off by having their deeply personal decisions automated and de-personalized. Leveraging AI in investing isn’t new—ask any asset manager who’s been using it for years. But using AI to help the average investor direct their own investing is. And that’s a BFD.

The takeaway: 5 ways AI can help you invest more confidently

AI is at a crossroads, its speedy response times and keen data analysis readily paired with natural-language search and next-level personalization. This promises to open up Wall Street to average investors all up and down Main Street. In fact, the AI-powered investing platform Magnifi has already developed the first AI conversational assistant designed for investing.

Americans were asked how AI could help them invest, in the recent survey by Magnifi. Their responses reflect the myriad paths people take toward a universal goal: the best financial outcomes.

Whether you're just getting started or a seasoned investor, here are 5 ways that AI can help you invest more confidently today.

Analyze historical data and trends. Perhaps you want market insights at your fingertips, like 32 percent of Americans. AI-powered investing assistants can synthesize a wealth of stock prices, economic indicators, and historical data so you can focus on the information you need, like how your favorite brand has performed during recessions.
Speed up research. If you want to spend less time reading reports and more time choosing how to put your investments to work, you’re like one quarter (25%) of Americans. When you have an AI assistant ready to jump into the details, you can take time to make important decisions, such as whether stocks, ETFs, or a combination of the two are right for you.
Keep financial goals on track. Perhaps you’re like the 17 percent who want AI to monitor their investments while they’re juggling family and work. Your AI assistant can alert you to a market dip and suggest ways to adjust or even optimize for it, so you can stay focused on the important things in life. When you invest with Magnifi, you can ask your conversational AI assistant to help you plan for different goals (just say “save for retirement” or “help me save for a house”). The assistant will keep tabs on them all.
Understand complex financial terms. You might be like the 15 percent who want a better grasp on complicated financial terms. With an AI assistant, you won’t need a business degree to understand what earnings per share is, how to calculate it, and importantly, how to invest with it in mind.
Get investment recommendations. Or perhaps you stand with the 11 percent who prioritize investing recommendations. An AI assistant is able to learn the strategy you prefer, the time frame you need, and how much risk you’re comfortable with. When you invest with Magnifi, you can even ask your AI assistant to identify your unique investing personality, so that it can recommend investments based on your goals and needs.

With an AI-powered assistant, investors can finally prioritize their own goals, enhance their knowledge at their own pace, and make ever more informed decisions. Investors can choose the path to financial health that feels right for them—and have a guide every step of the way.

References:

SWNS, “Why most people worry about making wrong decisions when investing,” September 26, 2022, New York Post, https://nypost.com/2022/09/26/why-most-people-worry-about-making-wrong-decisions-when-investing/.
Evans, Julie Ryan, “63% of Americans — Led by Millennials — Open to Using a Robo-Advisor,” October 3, 2022, Magnify Money by Lending Tree, https://www.magnifymoney.com/news/robo-advisor-survey/#:~:text=The%20latest%20MagnifyMoney%20study%20of,they%20use%20a%20robo%2Dadvisor.
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