Young investors are more likely to take investing advice from AI than they are to trust the mainstream media or finfluencers, according to new research from the U.K.’s Financial Conduct Authority (FCA).
In an online survey of 666 adults between the ages of 18 and 40 that was carried out in July, the regulator found that over half (56%) said that they trust investing information from AI tools — outpacing both the media (46%) and influencers on social media (29%).
While most respondents (73%) said that they know that AI can provide incorrect information, 80% said that they have used AI for investing help, two-thirds said that they have used it “occasionally or regularly” for investing, and 38% said that it’s fine to make investing decisions based solely on AI.
Additionally, almost half (44%) said that they believe that AI-generated financial information is regulated, and 32% believe that they’d be covered by the industry compensation fund if the advice is wrong.
“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 judgment,” cautioned Lucy Castledine, director of consumer investments at the FCA, in a release.