Australian regulator cautions Gen Z on AI and social media advice

Australia’s securities regulator urged Gen Z to be cautious with AI chatbots and social media influencers when making money decisions after research showed high trust in those sources and growing crypto ownership.

The Australian Securities and Investments Commission (ASIC) published findings on Sunday from its Moneysmart Gen Z study, based on an online survey of 1,127 Australians aged 18 to 28 conducted between Nov. 28 and Dec. 10 last year. The study found 23% own cryptocurrency, 63% use social media for financial information, 18% use AI platforms and 30% use YouTube.

Trust levels were elevated across digital sources. Overall, 56% reported they somewhat or completely trust financial information on social media, 52% expressed trust in “finfluencers,” and AI ranked as the most trusted source at 64%. ASIC warned that this trust can push some young investors toward riskier choices, with influencer and AI content often setting unrealistic expectations and downplaying volatility. Among Gen Z crypto owners, 29% reported trading based on social media and influencer content.

“We’re conscious that there’s a lot of marketing activity on social media to encourage crypto investment, and our work has shown some that is actually encouraging people to invest in scams,” according to ASIC commissioner Alan Kirkland. “It’s really important for people to be aware of those risks, because you don’t see that same volatility in other types of investments and often that volatility is driven by forces that it’s impossible for an individual sitting in Australia to understand.”

Kirkland pointed to Australia’s $4.5 trillion superannuation retirement system as a frequent target for unqualified advice. “We see it most where people are lured in through social media ads and then encouraged to switch their super, because super is often people’s most valuable asset, and that’s why disreputable people often target it and why it can be so tragic if people are encouraged to put it into a risky investment,” he noted.

ASIC is watching closely the financial information generated by AI tools. Kirkland reminded providers that Australian law requires a license for personal financial advice. “It is clear under Australian law that if any entity is giving financial advice, they need to be licensed. So if an AI tool, whoever’s providing it, is actually making recommendations about individual financial products, taking into account individual circumstances, that would be personal advice, so it needs to be licensed.”

Several crypto exchanges have added AI bots marketed as trading partners or sources of personalized guidance, including MEXC, KuCoin and Bitget. ASIC has also flagged enforcement against crypto and AI firms exploiting gray areas around payments licensing in Australia as a top priority for 2026.

The study observed that while many Gen Z respondents seek reputable financial content, they often struggle to find it and are drawn to material designed for engagement rather than accuracy. In June last year, ASIC issued warning notices to 18 influencers suspected of unlawfully promoting high-risk financial products and providing unlicensed advice.