As residents of the Hibiscus Coast navigate the changing financial landscape, a new analysis reveals that trust in artificial intelligence (AI) for financial advice remains shaky.

Despite AI's growing sophistication, many people still prefer human expertise when making significant investment decisions.

Research conducted by Gertjan Verdickt, a lecturer at the Business School at the University of Auckland, examines attitudes toward AI in finance.

With major banks and investment firms increasingly relying on AI for stock market predictions and client advisory services, the critical question arises: can AI be trusted with our money?

The study surveyed 3,600 individuals across the United States, asking them to imagine receiving stock market advice from human experts, AI, or a combination of both.

The findings showed that, generally, people favoured human advisers over their AI counterparts.

However, this scepticism is not universal.

Factors such as gender, familiarity with AI, and political beliefs influenced levels of trust.

For instance, women exhibited a 7.5 percent greater likelihood to trust AI compared to men, while individuals with more knowledge about AI were 10.1 percent more inclined to heed its advice.

The complexity of AI methods also impacted trust levels.

Lecturer Gertjan Verdickt, Business School, University of Auckland.

Participants preferred simpler AI approaches, such as basic statistical techniques, over more intricate models like deep learning.

This preference suggests that clarity in AI operations may enhance user confidence, akin to trusting a straightforward calculator over a complicated scientific instrument.

As AI continues to permeate the financial sector, the research highlights an urgent need for firms to improve client trust.

This could involve educating consumers about AI capabilities, clarifying its applications, and finding the right balance between human and machine input.

Understanding public perception will be essential for the acceptance of AI as a reliable financial advisor.

As technology evolves, so too must our approaches to integrating AI into financial decision-making, ensuring it becomes a trusted partner for the community.