TORONTO - The Ontario Securities Commission (OSC) has released a report titled Artificial Intelligence and Retail Investing: Use Cases and Experimental Research, which investigates how AI can assist retail investors in decision-making.
The report is based on an online investment simulation that tested how closely Canadians followed investment suggestions. Participants were given advice from three sources: a human financial provider, an AI tool, or a human using an AI tool. Results indicated that participants adhered most closely to suggestions from the blended approach, though the difference was not significant.
Interestingly, adherence levels were similar for suggestions from both human and AI sources, suggesting Canadian investors may be open to AI-assisted advice.
Leslie Byberg, Executive Vice President at the OSC, noted, "This research highlights the opportunities AI can create for Canadian investors while ensuring investor protection remains paramount in our regulations."
The OSC identified three primary use cases for AI in investing, emphasizing both potential benefits and risks. AI can enhance access to affordable investment advice, but it also poses risks, such as biased or inaccurate advice and the potential for AI-enhanced scams.
This research, conducted in partnership with the Behavioural Insights Team, underscores the necessity for ongoing studies to navigate the implications of AI in capital markets.