Book Reviews | 10:50 AM
The temptation to outsource investment decisions is real, but is it the right thing to do? Author and media commentator Tracy Sheen shares her thoughts.
The shortcut illusion: will AI make us lazy investors?
I spend my days helping people make sense of AI, and lately the same question keeps popping up: “Can’t AI just tell me what to buy?”
It’s today’s version of asking your uncle at a barbecue for a hot tip except the uncle is now an algorithm. The problem is the same: when we stop thinking for ourselves, shortcuts stop being clever and risk being costly.
From set-and-forget super to automatic bill payments, Australians love convenience. AI takes that instinct further by putting investment prompts in your pocket.
The temptation to outsource decisions is real, but so are the consequences when markets shift or optimism runs hot.
What’s going on with AI in investing
AI is everywhere in finance. Global platforms and local apps now offer robot-advice and algorithm driven portfolios with a few taps. In Australia, the robot-adviser sector is building momentum.
In 2025, Australians have parked close to AUD $10 billion with robot-advisers, still a fraction of total investing, but enough to show these platforms are no longer niche. Locally, Raiz leads the pack, serving more than 315,000 active customers and managing around AU $1.6 billion in funds as of late 2024.
Why it matters: the benefits and risks
Benefits
AI is efficient, accessible and low cost, especially for people just starting out. An algorithm can scan hundreds of company reports in minutes, surfacing patterns even seasoned investors might miss.
It can compare products, track market news and highlight movements in real time. For advisers, these tools are already cutting hours of admin and drafting first pass client notes.
That timesaving frees them for strategy and judgement rather than paperwork.
Risks
Relying on AI can make investors skip the critical thinking. As one finance expert put it, AI is “a really smart, lazy intern” helpful, but not a decision maker.
AI also lacks real world nuance. Markets are often too complex for algorithms to capture reliably. In bull markets, optimism can race ahead of caution. Retail traders using AI might overlook external risks such as geopolitical or economic events.
Some commentators have even compared today’s AI investing buzz to the dot com era. That doesn’t mean a crash is guaranteed, but it is a reminder not to confuse momentum with certainty.
How to use AI without overreliance
The key isn’t to reject AI entirely; it’s about using it smartly. AI should complement, not replace, human judgement. Think of it as a research assistant.
It can do the grunt work summarising lengthy reports, scanning disclosures or pulling trends out of datasets. Used this way, it helps investors process information without surrendering their decision making.
AI is there to support, not to replace. Humans should stay at the centre of all financial decisions, with the tools assisting in reaching final calls.
Five ways to keep yourself in the driver’s seat:
- Ask why before you buy: When AI gives advice, always ask, “Why does this make sense?” If you can’t explain it back in plain English, you probably shouldn’t act on it.
- Cross check the basics: Use AI as a starting point, not gospel. An AI might suggest a share fund focused on high-growth companies, fine for long-term investors, but risky if you need the money in just a couple of years.
- Watch for AI washing: Some companies overclaim their AI credentials. Look for transparency, a clear methodology and a track record.
- Blend tech with literacy: Let AI summarise reports but read the key sections yourself. Speed is fine, understanding is better.
- Build resilience, not shortcuts: Don’t chase AI driven hot tips. Balance growth ideas with long-term stability. If your strategy can’t withstand a market wobble, it needs more thought than any shortcut can provide.
AI is a powerful tool for investors efficient, accessible and smart. But the illusion of speed shouldn’t come at the cost of independent judgement. If we lean too hard on AI, we risk swapping curiosity for complacency.
The investors who’ll do best in this new era won’t be complacent; they’ll be the ones who use AI to think strategically. Use the tools to save time, widen your view and pressure test ideas. Just don’t hand them the keys.
Tracy “The Digital Guide” Sheen is a speaker, author and media commentator. With deep roots in digital transformation and practical AI, she helps small businesses, government and communities cut through the chaos — turning overwhelming tech into simple action.
Author of AI & U: Reimagine Business and The End of Technophobia, she has shared her frameworks for confident AI use with leaders across Australia. Visit www.thedigitalguide.com.au
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