While many fear AI will “terminate” entire industries, Chopra argues human trust in financial advisers is one thing it cannot replace.
Two decades of robo-advice has only captured 2 per cent of consumer assets and 97 per cent of clients with advisers say they’d never swap them for AI, according to Chopra. He notes that advisers have already optimised cash holdings to just 2 per cent of assets, limiting the risk posed by AI.
With earnings forecast to grow 16-fold between 2017 and 2028, trading at just 7 times earnings – half its historical average -Chopra sees a potential re-rating towards 13 times earnings, implying a price target near $US520 per share. versus $300.89 at Thursday’s close.
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