The FCA says younger investors are increasingly trusting AI tools for financial information: 56% of respondents aged 18 to 40 said they trust AI, while 44% incorrectly believed AI-generated financial information was regulated. Although the research concerns investing, its implications extend directly to mortgage and protection advice, where clients may increasingly arrive with chatbot-generated product views, affordability assumptions or rate forecasts.
Advisers can use this as an opportunity to explain the difference between education, unregulated general-purpose AI and regulated advice. Firms deploying AI should ensure that client-facing outputs are fact-checked, appropriately governed and do not overstate certainty or regulatory protection. Useful guardrails include source verification, auditable records of AI-assisted communications, human approval for personalised content and clear signposting when a client needs regulated advice.