Retail investors are increasingly adopting AI tools to build their portfolios, with the percentage of those using them rising by 46% in just one year, according to the latest quarterly Retail Investor Beat from online broker eToro.

The research revealed that 19% now use AI tools to pick or alter investments in their portfolios, up from 13% a year ago. The proportion of investors across the world open to adopting these technologies remains stable at 39%, compared to 38% last year.

This trend spans generations, experience levels, portfolio sizes, countries and genders: more investors in every group are already using or open to using AI tools. Across generations, millennials are now the most likely to use these tools at 72% compared to 61% a year ago, surpassing Gen Z (69% vs 68%). Boomers, though still behind at 35%, have seen an increase from 30% in Q3 2024.

Commenting on the data, eToro’s Global Market Strategist Lale Akoner, said:

“Two and a half years after ChatGPT appeared, AI has taken center stage across many areas of life, including investing. For retail investors, this technology is breaking down barriers by providing advanced analytics or detecting trends, empowering them to make more informed decisions and leveling the playing field.

“While adoption began with younger investors, we are now seeing rapid uptake across demographics. This shift underscores the agility of retail investors in embracing new tools to support their long-term goals.”

The research reveals that AI is the leading topic that retail investors plan to learn more about over the next year (23%), followed by cryptoassets and blockchain technology (22%), tax rules (18%) and ETFs (17%).

Across different generations, learning about AI-powered investment strategies was the top choice among millennials (27%, equal to crypto and blockchain), Gen X (24%) and boomers (17%). However, Gen Z showed a stronger preference for crypto and blockchain, with 25% mentioning these topics.

Lale Akoner commented:

“Retail investors know AI isn’t just a buzzword. Many have already experimented with AI tools and experienced firsthand their potential to enhance investment strategies. However, AI technology is still emerging and presents several challenges, such as understanding algorithms, ensuring data accuracy and integrating these tools into their strategies. These pain points are precisely why so many retail investors are eager to deepen their knowledge about AI. They acknowledge its transformative potential but also understand that mastering AI requires continuous learning and adaptation.”

The latest Retail Investor Beat highlighted that retail investors are not only ready to embrace AI tools but also remain bullish about the AI sector as an investment. The majority (55%) expect the price of AI-related stocks to increase in 2025, while 23% believe they will stabilize, and only 11% anticipate a decline.

AI, and digital transformation in general, top the list of long-term themes that retail investors consider when making investment decisions, cited by 31%, followed by cryptoassets and digital payments (27%), clean technology (26%), robotics and automation (25%), ageing population (24%) and the growth of the global middle class (22%).

Lale Akoner added:

“Retail investors see AI not just as a tool but as one of the most powerful growth stories in the market. With over half expecting prices of AI stock-related stocks to rise in 2025, confidence remains high that the sector will continue to deliver strong performance as companies harness AI to drive efficiency, innovation and profitability. While short-term volatility is always possible, the long-term trajectory for AI remains a core conviction theme among investors globally.”