Australian retail investors increasingly rely on AI for stock decisions amid market volatility

According to a survey conducted by stockbroking platform CMC, 48.6% of its Australian retail clients have incorporated AI tools into their investment workflow, with 33.1% using them sporadically and 15.6% on a regular basis. Users primarily leverage AI for company research, market analysis, and idea generation, yet less than a third express confidence in the technology's recommendations. Fraser Allan, a client premium manager at CMC, noted that proper prompting improves accuracy but a trust gap persists.

The study found investors still intend to maintain or increase their market exposure over the next six months, despite cost-of-living pressures and limited cash reserves. Many view ETFs as the preferred vehicle in uncertain times, while cryptocurrency is seen as the riskiest option. The findings arrive after the US Federal Reserve’s recent rate hike and ahead of an upcoming Reserve Bank of Australia policy meeting that could raise rates further.