By Kenneth Corbin
Investors generally expect artificial intelligence to be a net positive force for the markets, but that comes with reservations, according to a new survey from Janus Henderson Investors. The survey had two lines of questions. It asked participants about expected returns for the sector and about how they feel about their financial advisor using AI.
Regarding investing in AI: Janus found that 61% of the 1,000 investors surveyed expect the effect of AI on financial markets over the next five years will be positive. Of those, 46% are predicting a "modest" impact on market returns, while 15% are looking for a major impact.
However, a significant percentage are concerned about a bubble bursting and an imminent market correction. Two-thirds of respondents say they are very or somewhat concerned about a market correction in the next year. Just over half of respondents (52%) say they aren't confident that companies investing heavily in AI will outperform those that aren't.
AI investing skeptics cite concerns about the technology not living up to expectations, ethical considerations, and fears that AI stocks are overvalued.
Skepticism about AI is understandable, but investors need to be able to "distinguish between valuation noise and long-term structural change," says Janus portfolio manager Denny Fish.
"There will be no bigger secular theme than AI in our lifetime," he says. "But investors need patience and discipline, because while AI will create massive winners over time, it will also expose meaningful losers along the way."
Advisors and AI. Respondents expressed skepticism about the benefit of AI-driven advice, with three-quarters of the survey participants saying they worry about biased recommendations and almost as many expressing concerns about data security.
Investors are far more comfortable with their advisors using AI for other purposes, however, with 87% saying they feel good or neutral about advisors creating educational materials with AI or using it for administrative tasks.
That apparently doesn't include communicating with them directly. The survey found that 40% of respondents say they would be upset if their advisor responded to emails or texts using AI.
That keeps with a broader finding on transparency and disclosure: 79% of respondents say they would be unhappy if their advisor didn't disclose that they were using AI. A strong majority (85%) say they hold their advisors responsible for the content of AI materials that they distribute.
"While it has the potential to be a valuable tool for advisory practices, advisors will need to deploy AI in a strategic, thoughtful manner," says Matt Sommer, head of the specialist consulting group at Janus Henderson. "The bottom line is that the demand for human-led decision-making and personal connection will not be displaced by artificial intelligence; in fact, AI may actually increase the value investors place on those qualities."
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 19, 2026 15:09 ET (19:09 GMT)
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