Young men are more likely to use AI to guide their financial decisions compared to older generations and women.
Men aged 18-34 are also increasingly likely to turn to AI for financial advice, than older generations, according to wealth management company Handelsbanken.
Around a quarter of respondents who used AI admitted it was an alternative to professional financial advice, calling the typical advice on offer inaccessible due to costs and complexity.
Nearly 50 per cent felt comfortable using AI tools, such as ChatGPT, to manage their investments, compared to 12 per cent of older men.
Less than one in five women felt comfortable trusting AI.
Stephen Cowling,acting head of wealth at Handelsbanken, said, “While we recognise that AI has the potential to simplify some of the details of financial planning, misleading information can lead to very damaging financial consequences.
“Professional advice is really hard to beat, as it takes your own unique risk appetite into consideration while building a tailored plan.”
Taking risk
Young men are also more likely to take greater financial risks, showing a greater appetite for volatile investments.
Over 10 per cent of men aged 18-34 are excited by the potential gains that can be generated by risky investments in comparison to just one per cent of men aged 55 and above, according to research from wealth manager Handelsbanken.
Similarly, only two per cent of women expressed excitement about the possible returns that could come from making a risky investment choice.
High-risk investment products range from investing in penny stocks to betting capital on opportunities in emerging markets.
The lure of crypto
But, many Gen Z and Millennial men are opting to bet on cryptocurrencies, as the asset continues to lure in increasing numbers of investors.
Over 20 per cent of 18 to 34 year old men choose to invest in crypto, ten times higher than the amount of Gen X men, despite its lack of regulation and bruising history of losses and scams.
Men are also twice as likely to invest in crypto than women.
In 2024, people in the UK lost roughly £649m to investment fraud, with 66 per cent related to cryptocurrency scams, according to data from the City of London police.
Cowling said, ““We know that risk is necessary in the pursuit of financial returns, but it’s important to remember that where there is a positive risk of financial gain, there is also a negative risk of loss, which many feel vulnerable to.”
“It is critical to take on the right level of risk as individuals.”