The FCA’s research finds that 56% of younger investors trust AI tools, while 44% mistakenly believe AI-generated financial information is regulated. Although the research concerns investing, the lesson is directly relevant to mortgage and protection firms as clients increasingly use general-purpose chatbots to compare products, interpret affordability and form views on rates.
For advisers, AI should support research, administration and communications—not replace regulated judgement, suitability processes or source verification. Firms using generative AI should maintain clear client disclosures, human review and auditable records, while ensuring staff know when an AI output could be interpreted as advice.
- Check: source data, calculations and product criteria.
- Explain: the limits of unregulated general-purpose AI.
- Document: adviser oversight and the rationale for recommendations.