More than half of UK investors aged 18 to 40 trust artificial intelligence tools to help with investing, but many wrongly believe AI-generated financial information is regulated, according to Financial Conduct Authority research published on 27 August 2026.

The FCA found that 56 per cent of respondents trusted AI tools, compared with 47 per cent for television and radio, 46 per cent for the press and 29 per cent for social media influencers. Four in five less experienced investors had used AI for investing assistance, with around two-thirds doing so occasionally or regularly.

The research found significant gaps in understanding of the protections available when using AI for financial decisions. Some 44 per cent of respondents believed AI-generated financial information was regulated, while 38 per cent said it was acceptable to make an investment decision based solely on AI outputs.

The FCA found that 32 per cent also wrongly believed they would receive compensation from the Financial Services Compensation Scheme or Financial Ombudsman Service if AI advice resulted in losses. However, 73 per cent recognised that AI can provide inaccurate information and 86 per cent understood the importance of checking sources referenced by AI tools.

Lucy Castledine, director of consumer investments at the FCA, said AI could help investors “research companies, understand jargon or explore options” before making a decision. She added that consumers needed to understand how they were protected and continue to use their own judgement.

General-purpose AI chatbots are not regulated by the FCA, although tools specifically designed to provide financial advice would be likely to fall within the regulator’s remit. The FCA said its research was based on a survey of 666 UK adults aged 18 to 40, conducted through Attest on 24 July, with participants either holding investments or considering buying them within the next year.

Reacting to the news, Rob Hillock, head of personal financial planning at Broadstone, said AI was “rapidly becoming the first port of call for a new generation of retail investors”, but warned that confidence was running ahead of understanding. He said AI could make investing more accessible, but could not replace regulated financial advice or the personalised assessment of objectives, risk appetite and capacity for loss.

Dan Moczulski, UK managing director at eToro, said investors were using AI to identify assets, compare opportunities and analyse companies, with some beginning to use AI agents to monitor markets and execute trades. He said greater capability made human judgement “more important, not less”, because AI could produce incorrect information when left unsupervised.

The FCA is encouraging investors to verify AI-generated information, understand what protections apply and retain responsibility for their investment decisions.

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