The FCA reports that 56% of surveyed investors aged 18 to 40 trust AI tools, and four in five less-experienced investors have used AI for investment help. Yet 44% mistakenly believe AI-generated financial information is regulated, while 32% wrongly think they would have Financial Services Compensation Scheme or Financial Ombudsman protection if AI-led information proved harmful.
Although the research concerns investing, the lesson is directly relevant to mortgage and protection advisers. Clients may arrive with chatbot-generated views on rates, affordability, credit files, product eligibility or whether to fix or track. General-purpose AI is not regulated financial advice; it can be helpful for explaining jargon and generating questions, but it should not replace regulated advice, evidence gathering or lender-specific checks.
The Bank of England’s Artificial Intelligence Consortium continues to consider AI capability, deployment and risks in UK financial services. Firms using AI should therefore maintain practical controls: verify outputs against authoritative sources, protect client data, document the adviser’s assessment and make clear where regulated advice begins and generic digital information ends.