Australia’s financial regulator has warned young investors to exercise caution when relying on artificial intelligence tools and social media influencers for financial advice, after a recent study revealed the growing influence of these platforms on investment decisions.
The warning comes from the Australian Securities and Investments Commission (ASIC), which published findings from its latest Gen Z financial behaviour survey on Sunday. The study suggests many young Australians are placing significant trust in sources that may not always provide accurate or reliable financial guidance.
Gen Z turning to social media and AI for investment advice
According to the survey, 63% of Gen Z respondents use social media to access financial information, while 30% specifically turn to YouTube for investment-related content. Meanwhile, 18% said they rely on artificial intelligence platforms to guide financial decisions.
Despite concerns over reliability, trust levels remain high. The study found that 56% of Gen Z investors somewhat or fully trust financial information shared on social media. Similarly, 52% expressed confidence in so-called “finfluencers,” online personalities who create investment-focused content.
AI platforms ranked as the most trusted source overall, with 64% of respondents saying they rely on them for financial insights. The survey was conducted between November 28 and December 10 last year and included 1,127 participants aged between 18 and 28.
Regulators warn crypto influencers may promote risky investments
The research also highlighted the growing popularity of digital assets among young Australians. Around 23% of Gen Z respondents reported owning cryptocurrency, with nearly 29% saying they had traded based on recommendations from social media or online influencers.
Speaking to the Australian Financial Review, ASIC commissioner Alan Kirkland warned that marketing campaigns and influencer content could create unrealistic expectations about potential profits while downplaying market volatility and long-term risks. Kirkland also cautioned that some promotions circulating online may lead users into scams disguised as investment opportunities.
ASIC has already taken action against misleading financial promotions. In June last year, the regulator issued warning notices to 18 social media influencers suspected of promoting high-risk financial products and offering unlicensed financial advice.
The regulator is also monitoring the role of AI-driven financial tools. Kirkland emphasized that under Australian law, any platform providing personalized investment recommendations must hold the appropriate financial license.
The warning comes as several crypto exchanges including MEXC, KuCoin, and Bitget, continue integrating AI-powered trading assistants designed to provide users with tailored market insights.
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