Majority of Investors Surveyed Prioritize Risk Mitigation and Development of AI in Portfolio Companies

The Responsible Investment Association (RIA) recently conducted a survey revealing that a significant number of Canadian retail investors are concerned about the use of artificial intelligence (AI) in their portfolios. The survey, based on responses from 1,001 individual investors in Canada, highlighted the importance of identifying and mitigating risks associated with AI while also investing in its continued development.

The results of the 2023 RIA Investor Opinion Survey indicated that 79% of investors believe it is crucial for their portfolio companies to address potential risks related to AI, with 74% expressing a desire for companies to disclose information about their use and investment in AI technologies.

While concerns about greenwashing have slightly decreased since the previous year, with 68% of respondents indicating at least some level of concern, a majority of 69% agreed that responsible investment (RI) can have a positive impact on the economy and contribute to societal progress.

AGF Investments and Desjardins Investments sponsored the survey, which also revealed that two-thirds of investors are interested in RI and want their financial services provider to offer information about RI options that align with their values. Despite this interest, a significant portion of respondents reported limited knowledge about RI.

According to Patricia Fletcher, CEO of the RIA, retail investors are eager to incorporate responsible investment practices into their portfolios to reflect their concerns about social and environmental issues. However, many investors lack the necessary knowledge on the subject, creating an opportunity for financial advisors to educate themselves and guide their clients towards investments that resonate with their values.

Key Findings from the Survey Include:

• 65% of respondents express interest in RI, with younger and female respondents showing greater interest.
• 70% of investors have limited knowledge about RI, with some never having heard of it.
• 36% of respondents are more likely to choose RI in light of recent global events.
• 67% of investors want their financial services provider to inform them about RI options, yet only 32% have been approached about it.
• 68% of respondents have concerns about greenwashing, although this is lower than in 2022.
• 46% perceive AI as a risk rather than an opportunity, emphasizing the importance of risk mitigation and investment in AI development.

The full report from the 2023 RIA Investor Opinion Survey can be accessed here.

About the RIA Investor Opinion Survey

The Responsible Investment Association conducts the annual RIA Investor Opinion Survey to track individual investors’ perspectives on responsible investment and environmental, social, and governance (ESG) issues. The 2023 Survey collected data from 1,001 Canadian individual investors and has a credibility interval of ±3.5%.

About the Responsible Investment Association (RIA)

The RIA serves as Canada’s industry association for responsible investment, advocating for the promotion of responsible investment practices in both retail and institutional markets. RIA members collectively manage over $40 trillion in assets, emphasizing the significance and potential impact of responsible investment strategies.

SOURCE: Responsible Investment Association (RIA)