New York-headquartered Janus Henderson Investors has released the findings of its 2026 Investor Survey, which explores investor perceptions of artificial intelligence. Two-thirds of investors are concerned about an AI bubble in the next 12 months, but note that AI will have a positive market impact long-term.

A survey by Janus Henderson Investors reveals that while more than half of investors (61 per cent) expect AI to have a positive long-term impact on market returns, nine out of 10 investors have at least some concerns about investing in AI.

The most common investor concern is that AI may not deliver on expectations (28 per cent), followed by bias, misuse or insufficient safeguards (24 per cent), and the risk that AI investments may be overvalued (19 per cent).

The survey gauging views on AI covers 1,000 US affluent and high net worth investors in partnership with research firm 8 Acre Perspective.

Two-thirds of investors (67 per cent) are concerned about a potential AI bubble or AI-driven market correction in the near term, the survey shows. Over a longer horizon, sentiment becomes more constructive: 46 per cent of investors expect AI to have a modest positive impact on market returns over the next five years, while a smaller but more optimistic segment (15 per cent) anticipates a major positive impact. Notably, this strongest conviction skews younger investors â€“ 31 per cent of Millennials expect outsized returns, compared with 14 per cent of Gen X and 8 per cent of Boomers+.

“At Janus Henderson, we view artificial intelligence as a powerful enabler – one that must be approached with a disciplined client-centric lens. We are investing meaningfully to accelerate our AI transformation across our teams to enhance how we work and deliver for clients,” said Ali Dibadj, chief executive officer of Janus Henderson Investors.

“AI skepticism is understandable, but investors risk failing to distinguish between valuation noise and long-term structural change,” Denny Fish, portfolio manager on the global technology and innovation team at Janus Henderson Investors, added. “There will be no bigger secular theme than AI in our lifetime. But investors need patience and discipline, because while AI will create massive winners over time, it will also expose meaningful losers along the way. We believe this bifurcation will create opportunities for active managers.”

AI in advisory practices
While AI adoption is growing, barriers exist that limit its role in shaping investment decisions. Investors’ top five barriers to using AI for investment purposes include:

-- Concern that AI recommendation may be biased or conflicted (75 per cent); 
-- Concerns about data privacy or security (74 per cent); 
-- Preference for traditional methods e.g., advisors or personal research (73 per cent); 
-- Lack of trust in AI-driven recommendations (72 per cent); and
-- "I don’t feel comfortable judging whether AI advice is reliable" (70 per cent).

The vast majority of investors (87 per cent) said they would feel “good” or “neutral” about their financial advisor using AI to create educational collateral to share with them. However, investors are less comfortable with advisors using AI for more personal activities: 40 per cent said they would be upset if their advisor used AI for automatically responding to texts and emails, and one-third of respondents report they would be upset if their advisor used AI for investment recommendations.

“The industry faces challenges when it comes to using AI for advice, client communications, and investments. While it has the potential to be a valuable tool for advisory practices, advisors will need to deploy AI in a strategic, thoughtful manner,” said Matt Sommer, head of 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.”

Investors want transparency and accountability if their advisor uses AI: 85 per cent said they feel their advisor is ultimately responsible for AI-generated advice or materials, and 79 per cent said they would be upset if their advisor used AI without disclosing it. Notably, 33 per cent of investors said their advisor has discussed with them how they use AI in their practice.