Malaysia among top 3 markets worldwide for AI use in finance

Malaysia ranks among the top three markets globally for the adoption of artificial intelligence (AI) in finance, with a usage rate of 85%, surpassing the global average of 73%. A survey conducted by HSBC Malaysia, commissioned by the bank and carried out by Ipsos, examined affluent and high-net-worth investors across ten markets. The survey found that 85% of Malaysia's affluent and high-net-worth investors utilize AI tools for finance and investment purposes, although they still heavily rely on human professional judgment.

The survey revealed that Generation Z (aged 21-29) and millennials (aged 30-45) are the most avid users of AI for financial and investment decisions, with percentages of 86% and 89% respectively. Generation X (aged 46-61) and baby boomers (aged 62-69) followed with 85% and 78% AI usage, respectively.

Despite their adoption of AI, investors in Malaysia ranked financial professionals and institutions as the primary source of investment ideas (65%) and the most influential factor in investment decisions (39%). The survey emphasized that these investors necessitate human reassurance and strategic expertise, such as identifying errors in AI-generated data, interpreting intricate data, and applying judgment and validation.

A majority of respondents, 58%, expressed a preference for a human-AI partnership in their future financial decision-making. For Generation Z, this includes analyzing portfolio performance (61%) and generating new investment ideas (57%). Millennials held similar preferences, with 53% interested in both tasks. Additionally, 57% of respondents felt more in control of their investments due to AI use, while 21% felt less in control.

Furthermore, 54% of respondents indicated that AI made them more inclined to take calculated risks, which is more than double the 25% who felt more cautious.