Investors Bullish on AI Stocks but Skeptical of Advice: Janus Henderson Survey

As artificial intelligence continues to dominate the stock market, investors remain cautiously optimistic about AI and view it as a long-term investment. But some remain concerned about near-term risks, and the role AI plays in financial advice, a new study from asset manager Janus Henderson suggests. 

Investors have also expressed skepticism about relying on AI for receiving financial recommendations, citing concerns about data security, bias, and overhyped expectations, according to the survey of 1,000 U.S.-based investors, which was fielded from March 5 to March 24. 

About 79% of investors stated they would be “upset” if their advisor used AI without disclosing it, but when it comes to personalized projects, 40% say they would be upset if their advisor used AI for responding to texts and emails, and 33% stated they would be upset if their advisor used it for investment recommendations. 

While there is a larger concern for advisors who use AI, there is a sentiment from clients, but it depends on the application, such as educational tools, broaderbusiness support, and administrative tasks. 

About 87% of investors stated they would feel “good” or “neutral” about their financial advisor using AI to create educational tools.  

Despite there being mixed feedback on financial advice, the sentiment also remains on the investment as well, as tech companies continue to invest in AI. 

About 30% revealed that they think AI simply won’t live up to the expectations; 24% believe that bias would also play a huge role in how funding would be distributed for AI, and 19% shared their concerns about the risk of inflated valuations. 

The survey also found that millennials are more bullish when it comes to AI, as it is viewed as a tool for personalization and automation, with 76% of investors expressing confidence in AI-backed companies’ long-term return, compared to 55% among Gen X and only 30% from Boomers. 

“AI skepticism is understandable, but investors risk failing to distinguish between valuation noise and long-term structural change,” Denny Fish, portfolio manager at Janus Henderson Investors, said. “There will be no bigger secular theme than AI in our lifetime. But investors need patience and discipline, because while AI will create massive winners over time, it will also expose meaningful losers along the way. We believe this bifurcation will create opportunities for active managers.” 

As the stock market shows a mix of short-term uneasiness but confidence in the long run, investors are weighing the potential of increasing artificial intelligence concerns that current valuations and spending levels may contribute to an AI bubble. 

About two-thirds state they are concerned about an AI bubble forming in the next year, while 61% expect the technology to have a net positive effect on market returns over the next five years.