Australia’s financial regulator has warned young investors against relying on social media influencers and artificial intelligence chatbots when making financial decisions, following a study showing that roughly one in four Gen Z Australians invests in crypto.
The survey results were released by the Australian Securities and Investments Commission (ASIC), which found that many young investors place significant trust in potentially unreliable sources, increasing the likelihood of risky financial choices.
According to ASIC, the study revealed that while Gen Z is eager to access reliable financial information, many struggle to find trustworthy resources. As a result, their search for guidance often leads them to online content designed more for engagement than accuracy.
Regulators have already begun taking action. In June last year, the Australian Securities and Investments Commission issued warning notices to 18 social media influencers suspected of promoting high-risk financial products and providing unlicensed financial advice.
The latest survey, conducted between Nov. 28 and Dec. 10 with 1,127 respondents aged 18 to 28, found that 63% of Gen Z participants use social media for financial information, while 30% rely on YouTube for guidance. Around 18% reported using AI platforms for financial advice.
Trust levels were also notable. About 56% of respondents said they somewhat or fully trust financial information on social media, while 52% expressed similar trust in “finfluencers” — content creators who focus on financial and investment topics. AI platforms were considered the most trustworthy source among respondents, with 64% expressing confidence in them.
Warning over crypto influencers
The survey also showed that 23% of Gen Z in Australia now own cryptocurrency, including assets such as Bitcoin. Of those investors, 29% said they trade based on information from social media or influencer content.
The Australian Securities and Investments Commission cautioned that influencers may create unrealistic expectations about potential investment returns, market volatility, and the complexities involved in long-term investing.
Speaking to the Australian Financial Review on Sunday, Alan Kirkland, commissioner at the Australian Securities and Investments Commission (ASIC), said the regulator has been closely monitoring online marketing campaigns that encourage people to invest, noting that some of these promotions are linked to scams.
Kirkland said there is significant marketing activity on social media aimed at promoting crypto investments, and investigations by ASIC have found that some of these campaigns are designed to steer users toward fraudulent schemes. He emphasized that investors should be aware of these risks, adding that the volatility often seen in crypto markets can be difficult for individual investors to understand.
He also highlighted concerns surrounding superannuation funds in Australia — a retirement savings sector worth about $4.5 trillion — where unqualified influencers are increasingly offering financial advice. According to Kirkland, scammers frequently target people through social media advertisements and encourage them to move their retirement savings into risky investments. Because superannuation is often a person’s most valuable asset, such schemes can lead to serious financial harm.
ASIC monitoring AI-driven financial advice
Kirkland also told the Australian Financial Review that ASIC is closely monitoring how financial information is being generated and distributed through artificial intelligence tools. He warned that any platform providing specific financial recommendations must be properly licensed under Australian law.
If an AI tool gives tailored advice about particular financial products while considering an individual’s circumstances, it would be classified as personal financial advice and would therefore require a license, he said.
The warning comes as several crypto exchanges — including MEXC, KuCoin and Bitget — have begun integrating AI-powered bots that offer personalized trading guidance or act as digital “trading partners.”
Kirkland noted that one of the study’s most surprising findings was the high level of trust young people place in AI platforms. He explained that the reliability of AI-generated financial information can vary significantly depending on the questions users ask and the quality of the data sources the AI systems rely on.
Beyond AI-driven advice, the Australian Securities and Investments Commission has indicated that it will also focus on companies exploiting regulatory gray areas in payments and digital assets. In late January, the regulator warned that crypto and AI firms attempting to bypass licensing rules in Australia would be among its top enforcement priorities in 2026.
