Nearly half of young UK adults mistakenly believe AI financial advice is regulated, according to Financial Conduct Authority research. Some 44 per cent of 18- to 40-year-olds surveyed thought information from AI chatbots was regulated, while 32 per cent wrongly expected compensation if advice went wrong. Research indicates usage is particularly high among young people, with 76 per cent of 18- to 24-year-olds having used AI for personal finance compared to 47 per cent of 55- to 64-year-olds in a 2025 Lloyds Banking Group survey.

Financial experts warn against relying solely on AI outputs. Ben Yearsley of Fairview Investing described tools as "a useful starting point" but cautioned people were using them as "the end point." Ben Pashley, chief AI officer at Evelyn Partners, said chatbot responses "come across like personal recommendations without the accountability or data protection that applies to regulated financial guidance."

Thirty-eight per cent of 18- to 40-year-olds believe it is fine to make investment decisions based solely on AI outputs. However, 86 per cent of those surveyed understood the need to check sources. Holly Mackay of Boring Money noted "a healthy level of scepticism" but warned people assume financial brands using AI come with protections they do not. The Financial Services Compensation Scheme can pay up to £85,000 to individuals who lost money due to bad advice from regulated firms that went out of business after April 1, 2019, but general-purpose AI tools fall outside this protection.