New research from the UK's Financial Conduct Authority has found that younger investors now place more trust in artificial intelligence tools than in traditional media or social media influencers when researching investments. The survey, focused on adults aged 18 to 40 who own investments or would consider buying them within 12 months, showed that 56% trust AI tools, compared with 47% for television and radio, 46% for the press, and just 29% for social media influencers.
The study also found that four out of five less experienced investors have already used AI when deciding where to put their money, and around two-thirds expect to rely on these tools even more over the next year. Users commonly turn to general-purpose chatbots to decode jargon, scan company information and compare options without paying for a regulated adviser.
However, the FCA warned of a significant gap between usage and understanding. Almost half of respondents, 44%, mistakenly believe AI-generated financial information is regulated. More than one in three, 38%, said they would be comfortable making an investment decision based solely on AI output, while roughly a third, 32%, wrongly think they would receive compensation from the Financial Services Compensation Scheme or the Financial Ombudsman Service if AI advice went wrong.
At the same time, 73% recognised that AI outputs can be inaccurate, and 86% understood the need to check the sources cited by AI tools. Lucy Castledine, the FCA's director of consumer investments, said AI can help people research companies, understand jargon or explore options before making a decision, but users need to understand how they are protected and continue to use their own judgement.
The regulator stressed that general-purpose AI chatbots are not regulated by the FCA, although tools specifically set up to provide financial advice would likely fall within its remit. The FCA also pointed investors to its InvestSmart website and offered five safety tips: stay in the driving seat, check sources, know there is no safety net, remember that past performance does not guarantee future returns, and think long-term.
The research was conducted by the FCA via the Attest platform using a quantitative usage and attitudes study on 24 July 2026, with a sample of 666 UK respondents aged 18 to 40. The findings underline how AI has become a widely used and relatively trusted source of financial information, even as many younger investors remain unclear about the legal safeguards that apply to AI-generated advice.
