56% of Young Investors Trust AI More than Traditional Media

Most young investors in the UK are turning to artificial intelligence to make investment decisions, but many overestimate the regulatory protection surrounding these tools. A study conducted by the Financial Conduct Authority (FCA) in July 2026 found that 56% of respondents trust AI tools for investment support, surpassing confidence in television, radio, or print media.

Trust in AI Surpasses Media and Influencers

According to the study conducted by the FCA with 666 respondents aged 18 to 40 years residing in the UK with current or future investment interests, four out of five less experienced respondents have used AI to assist in investments. Two-thirds of them do so occasionally or regularly.

Compared to other sources, trust in artificial intelligence stands out:

• AI: 56%
• TV and radio: 47%
• Print media: 46%
• Social media influencers: 29%

Additionally, two-thirds of respondents expect to increase their use of AI in investments over the next year.

Misunderstandings about Protection and Regulatory Risks

The study identified significant confusions:

• 44% mistakenly believe that AI-generated financial information is regulated.
• 38% believe it is acceptable to make investment decisions based solely on AI responses.
• 32% assume they would receive compensation from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service if an AI-based recommendation went wrong.

However, nearly three out of four (73%) acknowledge that AI can provide inaccurate information, and 86% understand the importance of checking the sources cited by AI.

Current Regulation on AI and Investment Advice

The FCA clarifies that general-purpose AI chatbots are not regulated in the UK. Only tools specifically designed to provide financial advice would fall under the jurisdiction of the Financial Conduct Authority. Tools that only gather or summarize information but do not provide personalized advice offer no regulatory guarantees or investor protection.

“AI can help you research companies, understand concepts, or explore options before deciding.” — Lucy Castledine, Director of Consumer Investments at the FCA.

Castledine emphasizes the importance of investors understanding the limits of protection and continuing to apply their judgment. She also recommends the FCA's educational resource called InvestSmart, designed to improve decision-making.

5 Recommendations from the FCA for Using AI in Investing

The Financial Conduct Authority summarizes its approach in five key recommendations:

1. Control your decisions: AI informs, but the final decision always rests with the investor.
2. Verify sources: Ask AI for the sources of its information and check them independently.
3. There is no safety net: Unlike regulated financial advice, recommendations generated by AI lack backing or compensation if the outcome is negative.
4. Past performance does not guarantee future gains: AI can only show you historical data but cannot predict outcomes.
5. Think long-term: Responsible investing requires a perspective beyond quick tips, whether from AI or third parties.

The InvestSmart site of the FCA offers more information on risks and criteria for informed investing.

Methodology and Context of the Study: Young Investors and AI Adoption

The FCA survey, conducted via the Attest platform on July 24, 2026, focused on AI users in personal investments in the UK. The aim was to measure the adoption, trust, comfort, and expectations regarding AI tools for financial research and future decision-making.

The 666 participants, aged 18 to 40 years, reported having investments currently or being willing to acquire them within the next 12 months. The study underscores a growing trend toward using artificial intelligence in financial decisions, although gaps in understanding regulatory protection and the reliability limits of AI-generated advice persist.