AI Advice Risks Need Clear Guardrails

Consumers are increasingly turning to AI for financial information. FCA research found that 56% of 18- to 40-year-old investors trust AI tools, while 44% mistakenly believe AI-generated financial information is regulated. Around 38% believe it is acceptable to make an investment decision solely from AI output, and 32% incorrectly expect FSCS or Financial Ombudsman protection if AI guidance goes wrong.

The findings are directly relevant to mortgage advice, particularly as reports point to first-time buyers receiving conflicting messages from social media, family and AI tools. Advisers should explain that general-purpose chatbots are not regulated financial advisers, encourage clients to verify information, and provide a clear route from online research to regulated, personalised advice.

  • Use AI for education, jargon-busting and meeting preparation.
  • Keep regulated recommendations, affordability assessment and final decisions under appropriate human oversight.
  • Record how AI-generated material is reviewed before it is shared with clients.

more blogs

Consumer Duty: Govern AI Evidence

The FCA’s latest fair-value commentary stresses that firms need evidence showing the relationship between price, benefits and actual customer outcomes. It expects firms to assess

Read more >

Rates Steady, Market Signals Mixed

Moneyfacts reported average two-year and five-year fixed rates broadly unchanged at 5.97% and 6.00% respectively. Yet market conditions remain unsettled: inflation was reported at 3.5%,

Read more >