economy
People using AI chatbots for help with money issues have ‘no safety net’
More people are turning to artificial intelligence (AI) for help with investing, particularly those who are new to the investing world. However, the Financial Conduct Authority has warned that using this method could leave investors unprotected if things go wrong.
TL;DR
- Nearly half of people using AI for financial information mistakenly believe it is regulated by the FCA.
- Unlike regulated financial advisors, most AI chatbots are not regulated, leaving investors unprotected.
- 56% of 18-40 year olds who hold or consider buying investments trust AI tools for decision-making.
- Consumers using AI for financial advice have no safety net and cannot be compensated for losses.
- The FCA advises users to remember AI can inform decisions but the final call is theirs, to check sources, and understand that past performance is not a guide to future returns.