RIA report also reveals strong demand for responsible investing
Working out the pros and cons of artificial intelligence can be daunting, but investors want to know how it’s being used by the companies they invest in and the risks.
A new report from the Responsible Investment Association published today (Feb. 29) highlights the concerns that retail investors have about AI with 79% saying it’s important that their portfolio companies identity and mitigate potential risks and 74% wanting information about how companies are using and investing in it.
The poll highlighted the split in sentiment around AI with 46% of participants saying it is more of a risk than an opportunity while half said that firms should make use of it in their products or services, while managing risks.
The financial services industry is expecting to see a growth in AI usage with a recent survey from EY revealing that 86% of respondents from financial institutions are expecting a significant or moderate increase in their model inventory due to generative AI adoption.
Responsible investing
The RIA Investor Opinion Survey found that greenwashing is less concerning for Canadian retail investors than it was a year ago with 68% very or somewhat concerned, down from 75%.
Responsible investing is held in high regard, with 69% of respondents saying it can have a positive impact on the economy and societal change. Investors expect their financial services providers to tell them how their investments are aligned with their values.
One third of respondents currently own responsible investments but 65% said they are interested with younger cohorts and women more likely to be. Although a similar share would like to know more about these investment options from their financial services provider, only around one third say their provider has ever mentioned it.
Seven in ten investors said they have very limited knowledge of responsible investing and 21% had never heard of it.
“Retail investors are interested in responsible investment and want their portfolios to reflect their concerns about social and environmental issues,” said Patricia Fletcher, CEO of the RIA. “However, they lack knowledge on the subject, presenting a significant opportunity for financial advisors to equip themselves to meet these demands and inform their clients on investment options that align with their preferences and personal values.”
The report was sponsored by AGF Investments and Desjardin and the survey was conducted by Ipsos in November 2023.
