The FCA says that 56% of surveyed 18- to 40-year-old current or prospective investors trust AI tools, yet 44% mistakenly believe AI-generated financial information is regulated. More than one in three respondents thought it was acceptable to make an investment decision solely from AI output, while around a third wrongly assumed Financial Ombudsman Service or FSCS protection would apply if AI guidance proved harmful.
The research concerns investments, but the lesson is highly relevant to mortgage and protection firms introducing consumer-facing AI. General-purpose chatbots are not regulated simply because they discuss financial topics; tools designed to provide regulated advice may fall within the FCA’s remit. Firms should use clear disclosures, escalation to qualified advisers, source-checking and robust record keeping, ensuring clients understand that AI can support research and service but must not be mistaken for a guaranteed or automatically regulated recommendation.