Young investors are placing greater trust in artificial intelligence than in television, newspapers or celebrity influencers, according to new research from the Financial Conduct Authority (FCA).

The regulator's survey of 18- to 40-year-olds who hold or are considering investments found that 56% trust AI tools with their money. That compares with 47% who trust television and radio, 46% who trust the press, and just 29% who put their faith in social media influencers.

Four in five less experienced investors have now used AI for investing assistance, with around two-thirds doing so occasionally or regularly. A further two-thirds expect to rely on automated tools even more over the next twelve months as they become more familiar with the technology.

However, the FCA warned that widespread use is accompanied by serious misconceptions regarding regulatory protections. Almost half of respondents (44%) mistakenly believe that financial information produced by AI is regulated.

More than one in three (38%) believe it is acceptable to make an investment decision based entirely on AI outputs, while 32% wrongly believe they would be eligible for compensation from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service if AI-generated advice led to losses.

Despite these misunderstandings, many investors show some caution. Nearly three-quarters (73%) recognise that AI can provide inaccurate information, and 86% understand the importance of verifying the sources referenced by the software.

The FCA clarified that general-purpose AI chatbots do not fall under its regulatory perimeter. While tools created specifically to deliver financial advice would likely be regulated, standard chatbots are designed for general conversational queries and lack the safeguards required for financial decision-making.

Lucy Castledine, director of consumer investments at the FCA, said: "AI can help you research companies, understand jargon or explore options before you make a decision. But you need to understand how you're protected and continue to use your own judgement. Our InvestSmart website can also help you make more informed decisions."

The regulator published five key recommendations for consumers using AI tools: stay in control of the final decision; check and verify all sources; recognise that general-purpose chatbots carry no regulatory safety net; remember that past performance does not guarantee future returns; and approach investing with a long-term strategy rather than treating it as a quick route to wealth.

The quantitative study was carried out on 24 July 2026 using the Attest platform, surveying 666 UK adults aged 18 to 40 who currently hold investments or plan to invest in the coming year.

I'll be tracking how the FCA and wider industry respond as more retail investors adopt automated tools — check back for updates.