Many investors wrongly believe AI investment tips are regulated

The Financial Conduct Authority published a survey on 28 August 2026 finding that nearly half of 666 UK investors aged 18–40 who use AI wrongly believe AI-generated investment tips are regulated.

The research found 80% of respondents use some form of AI. Forty-four percent incorrectly assumed information from general-purpose AI chatbots falls under the FCA’s protection. Around a third believed they could claim compensation from the Financial Services Compensation Scheme or take complaints to the Financial Ombudsman Service after losses from AI suggestions. Seventy-three percent recognised AI can produce inaccurate information and 86% said they check sources referenced by AI, yet 38% said they would be comfortable making an investment decision based solely on AI outputs.

Two-thirds of those surveyed signalled they expect to rely more on AI for financial decisions in future. The FCA cautioned that general-purpose chatbots are not covered by its rules, while tools specifically set up to give regulated financial advice would likely fall within its remit.

Lucy Castledine, director of consumer investments at the FCA, warned: “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.” The regulator also noted: “Unlike regulated financial advice, AI-generated tips from general-purpose chatbots mean you are not covered if things go wrong.”

The survey highlighted overlap between AI use and social media guidance. Separate research cited by the FCA found people lost an average of £3,000 to investment fraud on social platforms, and that more than half of those who acted on social media financial advice suffered harm, with typical losses of about £700.

People aged 25–34 were most likely to act on social media tips and to use AI for financial guidance. Half of that group used AI in the past year; 27% used it for savings guidance and 18% for investment choices.

The FCA said it took enforcement action against 74 individuals offering financial advice on social media without proper authorisation in the previous year. The regulator encouraged firms developing AI tools for finance to engage with its testing initiatives and to consider whether their products should be subject to regulation. The FCA plans to keep monitoring AI use in finance and to act where necessary to protect consumers.