FCA Research Reveals Growing Reliance on AI Among Young Investors

New research from the Financial Conduct Authority (FCA) has revealed the growing role artificial intelligence is playing in investment decisions among younger and less experienced investors.

Four in five less experienced investors have used AI for help with investing, with around two-thirds reporting that they use the technology occasionally or regularly.

The research, focused on 18- to 40-year-olds who either own or are considering investments, found that 56% trust AI tools. This puts AI ahead of TV and radio (47%), the press (46%) and social media influencers (29%) as a trusted source.

The trend looks set to continue, with two-thirds of those surveyed expecting to rely on AI even more over the next year.

Investors may misunderstand AI protections

While adoption and trust are increasing, the FCA’s research also identified potential misunderstandings around the protections available when people use AI to support investment decisions.

Almost half (44%) of respondents mistakenly believe that AI-generated financial information is regulated, while 38% believe it is acceptable to make an investment decision based solely on AI outputs.

Around a third (32%) also wrongly believe they would receive compensation from the Financial Services Compensation Scheme (FSCS) or Financial Ombudsman Service if AI advice went wrong.

At the same time, awareness of some of AI’s limitations is high. Almost three-quarters (73%) know that AI can provide inaccurate information, while 86% understand the need to check sources referenced by AI tools.

General-purpose AI chatbots are not regulated by the FCA. However, tools specifically established to provide financial advice would be likely to fall within the regulator’s remit.

Lucy Castledine, director of consumer investments at the FCA, said:

“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 judgement. Our InvestSmart website can also help you make more informed decisions.”

FCA issues five tips for investors using AI

Alongside its research, the FCA has outlined five tips for people using AI when making decisions about their money.

1. Stay in the driving seat. AI can inform your decisions, but the final call is yours.
2. Check your sources. Ask the AI where it got its information from, then verify it yourself.
3. Know there’s no safety net. Unlike regulated financial advice, AI-generated tips from general-purpose chatbots mean you are not covered if things go wrong.
4. Past performance is not a guide to future returns. AI can only provide historical data and cannot predict how an investment will perform.
5. Think long-term. Investing is not a get-rich-quick scheme, regardless of where the tip comes from.

The research was conducted by the FCA through the Attest platform on 24 July 2026. The study surveyed 666 UK respondents aged between 18 and 40, all of whom either currently own investments or would consider buying investments within the next 12 months.

Read the full FCA press release or learn more about investing and risk through the FCA’s InvestSmart website.