Australia Flags Risks of AI and “Finfluencers” as Gen Z Crypto Ownership Rises

Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), has warned young investors about the risks of relying on social media influencers and AI chatbots for financial guidance. A recent survey of 1,127 Australians aged 18–28 found that 63% use social media for financial information, 18% consult AI platforms, and 30% rely on YouTube content.

While Gen Z shows high trust in these sources 64% trust AI financial tools and over 50% trust “finfluencers” ASIC cautions that this reliance may contribute to riskier financial decisions. Last year, the regulator issued warnings to 18 influencers suspected of unlawfully promoting high-risk financial products.

Crypto Adoption Among Gen Z

The survey revealed that 23% of Gen Z investors in Australia hold cryptocurrency. Of these, 29% make trading decisions influenced by social media or influencers. ASIC warned that such guidance may create unrealistic expectations about returns, volatility, and long-term investment strategies.

ASIC Focus on AI Financial Advice and Superannuation

ASIC commissioner Alan Kirkland emphasized that any entity offering individualized financial recommendations, including AI tools, must be licensed. He also highlighted risks in superannuation funds, where unqualified influencers may encourage switching to high-risk investments. The regulator is monitoring AI and crypto platforms closely, particularly those offering personalized trading guidance.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.