Data from the Financial Conduct Authority (FCA) found that 56% of 18-40 year-olds who own or are considering investments trust AI tools, compared with 47% for TV and radio, 46% for news media (down one percentage point) and 29% for social media influencers, who ranked lowest.

It found that four in five less experienced investors have used AI for help with investing – and around two-thirds report doing so occasionally or regularly. And people are getting more comfortable, with two-thirds expecting to lean on AI even more over the next year.

The research also found that young investors relying on AI to support their investment decisions may not understand the level of protection they receive, highlighting that almost half (44%) mistakenly believe AI-generated financial information is regulated.

More than one in three (38%) believe it’s fine to make an investment decision based solely on AI outputs and around a third (32%) wrongly think they’d get compensation from the Financial Services Compensation Scheme (FSCS) or Financial Ombudsman Service (FOS) if AI advice went wrong.

However, the survey found that 73% of respondents understood that AI can provide inaccurate information, with 86% understanding the need to check the sources referenced when using AI. 

The FCA noted that general purpose AI chatbots are not regulated, although tools which are specifically set up to provide financial advice would be likely to fall within the FCA’s remit.

Lucy Castledine, director of consumer investments at the FCA, said: “AI can help you research companies, understand jargon or explore options before you make a decision.

“But you need to understand how you’re protected and continue to use your own judgement. Our InvestSmart website can also help you make more informed decisions.”