Australia’s financial regulator, ASIC, has warned young investors against relying on social media influencers and AI for financial decisions. A new study found 23% of Australian Gen Z owns cryptocurrency, with 29% of these investors trading based on social media content. The regulator highlighted high levels of trust in these often unreliable sources as a key driver of riskier financial behavior.
Australia’s financial regulator has urged young investors not to rely on social media influencers and artificial intelligence chatbots for financial guidance. This warning follows a study revealing one in four Australian “Gen Zs” now invest in crypto.
The Australian Securities and Investments Commission (ASIC) posted survey results finding Gen Z has high trust in “often unreliable sources.” This has contributed to riskier financial decisions according to the regulator.
The survey found 63% of the group uses social media for financial information while 18% use AI platforms. It also showed 56% of Gen Z “somewhat or completely trust” financial information on social media. Artificial intelligence was deemed the most trustworthy source among this group, at 64%.
The survey showed 23% of Gen Z owns crypto, with 29% of these trading based on social media and influencer content. ASIC warned influencers may “set unrealistic expectations” about returns, volatility, and long-term investing.
ASIC commissioner Alan Kirkland stated the regulator is watching marketing activity that drives crypto investments, noting some promotions are scams. “We’re conscious that there’s a lot of marketing activity on social media to encourage crypto investment, and our work has shown some that is actually encouraging people to invest in scams,” he said.
Kirkland also told the AFR that ASIC is “watching very closely” the financial information derived from AI tools. He clarified that Australian law requires a license for any entity giving personalized financial advice, which would include specific AI recommendations.
The regulator’s concerns come as several crypto exchanges have integrated AI bots to offer personalized trading guidance. In late January, ASIC also warned that exploiting licensing gray areas for crypto or AI payments would be a top priority for 2026.
