As AI adoption rises and private markets expand, UK investors are increasingly looking to advisers for more than just returns – they want guidance, reassurance, and judgement. Morningstar’s Investor Perspectives: Retail Investor survey finds that while trust in generative AI is growing, most investors still don’t use it, and barriers to private markets remain firmly in place.
Private markets are expanding, offering investors strong returns. Globally, 1,643 private companies are valued at over $1 billion (as of April 2026). However, retail involvement remains low: 72% don’t invest in private markets, and 52% avoid alternatives altogether. Only 18% of UK retail investors say they understand these investments, suggesting comprehension is a barrier.
Meanwhile, AI is influencing how retail investors approach decisions; most view it as a helpful tool, not a guaranteed solution. 51% of UK investors accept responsibility for losses from AI-driven advice, while losses from human advisers are seen as a shared responsibility: 37% blame themselves, 28% blame the adviser, and 34% attribute fault to both.
Trust is increasing in AI, but this hasn’t impacted usage: by 2026, 45% of participants reported high trust in generative AI for investment decisions – up from 29% in 2024. Similarly, low trust fell from 38% in 2024 to 27% in 2025. Despite trust increasing, 68% of investors still don’t rely on AI for investment decisions, and only 2% use it for most decisions. This trend holds across all age groups, indicating that familiarity isn’t the main barrier.
Other key takeaways include:
- Investor/Adviser Trust: 89% percent of UK investors who work with financial advisers rate them as highly valuable in shaping their investment strategies, but many struggle with trust and information overload.
- Long-Term Investing Appeal: 67% of UK investors find long-term investing appealing, but emotional barriers and uncertainty can hinder commitment.
- Selecting Alternatives: Cryptocurrency remains the most popular alternative asset, although its ownership fell slightly from 25% in 2025 to 23% in 2026. Private equity ownership dropped by 4%, moving from 26% in 2025 to 22% in 2026, while private debt increased by 2%, rising from 6% in 2025 to 8% in 2026. Overall, these changes show that investors are becoming more selective as they consider which assets suit their needs.
- Approach to Alternatives: Morningstar suggests holding alternative investments for at least ten years; however, 41% of investors are only comfortable with a maximum holding period of three years.
Joseph Agostinelli, senior director of market research, Morningstar, explained: “Investors are signalling a clear need for human judgement in an increasingly digital investment landscape. While trust in AI is rising, it’s not replacing advisers – it’s reinforcing the value of guidance, particularly when markets are complex or uncertain. At the same time, our findings show that access and understanding remain major hurdles in private markets, even as interest grows.”