Four in Five Less Experienced Investors Are Using AI for Investment Help, FCA Finds

The Financial Conduct Authority has warned that general-purpose AI chatbots carry no regulated consumer protection, as its own research shows 80 per cent of less experienced investors have already turned to AI for investment guidance.

Four in five less experienced investors have used AI for help with investing, according to Financial Conduct Authority research — and around two thirds do so occasionally or regularly. Two thirds of those surveyed also expect to rely on AI even more over the coming year, a finding the regulator says points to a fast-shifting picture in how ordinary people make investment decisions.

The figures show AI is trusted more than traditional media among this group. Some 56 per cent of respondents said they trust AI tools, compared with 47 per cent for TV and radio, 46 per cent for the press, and just 29 per cent for social media influencers. Yet the FCA’s core warning is straightforward: general-purpose AI chatbots are not regulated in the same way as authorised financial advice services, meaning consumers who rely on them have fewer protections if something goes wrong.

For Kent residents using app-based trading platforms, self-directed pension tools or online investment services, the practical implication is clear — the AI assistant built into a general search or chat tool is not the same as FCA-authorised advice, even if its answers sound confident and specific.

The research does suggest most users have some awareness of the risks. Some 73 per cent of respondents understood that AI can produce inaccurate information, and 86 per cent knew they should check the sources AI references. But awareness and behaviour don’t always match, and the FCA’s concern appears to be the gap between knowing a risk exists and actually acting on that knowledge before making an investment decision.

The FCA’s position is that existing consumer protection and conduct rules apply to AI-generated financial advice where a tool is specifically set up to provide it — but that most general-purpose chatbots fall outside that boundary. The regulator says AI can legitimately help consumers research companies, understand financial jargon and explore options, provided users verify outputs against trusted, non-AI sources before acting.