FCA Survey Finds Young Investors Trust AI Over Traditional Media Sources

A UK Financial Conduct Authority (FCA) survey reveals that a majority of investors aged 18 to 40 trust artificial intelligence (AI) more than traditional media or influencers when seeking investment guidance. Yet, many in this group are mistaken about the regulatory safeguards and protections that apply when using these tools. Four out of five less experienced investors have engaged with AI for investment support, highlighting a marked shift in trust away from TV, press, and personalities.

Young Investors Increasingly Trust AI Tools

The FCA's Attest survey of 666 UK respondents shows that 56% trust AI-generated investment information, eclipsing trust in television and radio (47%), the press (46%), and social media influencers (29%). Two thirds of participants already use AI at least occasionally for investment research or decision-making. The survey also found that 66% expect to use AI more frequently for investing over the coming year.

Interest in AI for investing is concentrated within the 18-40 demographic who either currently own investments or are considering doing so soon. This pattern reflects broader adoption trends of digital tools in UK retail investing, with regulation trailing rapid consumer uptake.

Misunderstandings About Regulatory Protection and Oversight

Despite the enthusiasm for AI, the FCA research found significant knowledge gaps about the legal standing and consumer protections associated with these tools:

• 44% wrongly believe information generated by AI for investing is regulated.
• 38% think it is fine to act solely on AI outputs when making investment decisions.
• 32% mistakenly expect compensation from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service if AI-generated advice proves faulty.

This is at odds with FCA guidance. The regulator clarifies that general purpose AI chatbots are not covered by FCA regulation. Only AI products explicitly designed to provide financial advice would likely fall within its remit.

AI Can Inform — But Does Not Replace — Human Judgement

Although trust in AI is increasing, most young investors remain cautious. The survey found:

• 73% recognise AI can provide inaccurate or misleading information.
• 86% acknowledge the importance of checking the sources when using AI-generated outputs.

Lucy Castledine, director of consumer investments at the Financial Conduct Authority, emphasised:

"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." Investors are reminded that the FCA’s InvestSmart resource provides additional guidance and tools for informed decision-making.

FCA’s Tips for Safe Use of AI Tools in Investing

The FCA summary includes five concrete recommendations for those using AI in their investment research and decisions:

1. Stay in control. AI-supported advice is not a substitute for personal judgement.
2. Scrutinise sources. Ask AI tools for citations and validate information independently before acting.
3. Know the limits. General AI tools are not regulated financial advisers; there's no compensation scheme for losses caused by their output.
4. Don’t rely on past performance. AI can only process historical data and cannot predict future investment outcomes.
5. Focus on long-term goals. Avoid speculative behaviour whether a tip came from AI or any other informal channel.

For more frameworks for responsible investing, see the FCA’s InvestSmart platform, which is designed to help consumers understand investment risk and regulatory oversight.

About the Research: Methodology and Scope

The FCA commissioned this study through the Attest platform, using a quantitative survey format. Conducted on 24 July 2026, it drew on responses from 666 UK adults aged 18–40 who are current or potential investors within the next 12 months. The aim was to measure the degree of adoption, reliance, and perceived protection associated with AI use in UK personal investing.

How This Influences the Regulated Advice Landscape

While general-purpose AI chatbots currently remain outside the FCA’s regulatory perimeter, any tool designed specifically for regulated financial advice would likely fall under direct oversight. This distinction is crucial, particularly for B2B providers developing or marketing AI-driven products for retail markets. Future regulatory moves may seek to close gaps between consumer trust and the actual scope of protection. Continuing misperceptions about regulation highlight the pressing need for clearer guidance and potential evolution in regulatory frameworks.