Young investors trust AI more than TV or celebrities
A Financial Conduct Authority survey found 56% of younger investors trust AI tools for investing more than traditional media or influencers, though most recognize accuracy risks.
A Financial Conduct Authority survey of 18- to 40-year-old investors found that 80% of less experienced individuals have used AI for investing, with 66% doing so occasionally or regularly. Among these investors, 56% expressed greater trust in AI tools compared to TV, radio, press, or social media influencers. The survey also revealed that two-thirds of respondents anticipate increasing their reliance on AI for investment decisions within the next year.
The research highlighted concerns about protection levels when using AI for investing, as 73% of respondents acknowledged the risk of inaccurate information from AI tools. Additionally, 86% recognized the importance of verifying sources referenced by AI systems. The FCA emphasized that general-purpose AI chatbots are not regulated, though tools designed specifically for financial advice may fall under its oversight.
The FCA stressed that while AI can assist in researching companies, explaining jargon, or exploring investment options, investors must remain cautious. It noted that AI tools are not regulated unless tailored for financial advice, urging users to verify information and exercise independent judgment. The regulator also directed investors to its InvestSmart website for guidance on making informed decisions.
The survey underscores a growing trend among younger investors toward using AI for financial decisions, despite awareness of its limitations. The FCA’s findings suggest a need for greater investor education on the risks and protections—or lack thereof—when relying on AI for investment research and advice.