More than three million people in the UK are turning to AI for financial planning advice, but the Financial Conduct Authority (FCA) warns that consumers may believe AI-generated financial information is regulated.
According to research from the FCA, almost half (44 per cent) of consumers mistakenly believe AI-generated financial information is regulated.
The findings come amid growing use of AI as a source of financial guidance, with research from financial services firm Zable suggesting that more than three million people in the UK use AI for financial planning advice.
According to Zable’s research, 61 per cent or 21.6 million of UK consumers do not feel confident that they know what they are doing with their finances.
The research also found that 62 per cent of consumers turn to online or other unregulated or informal sources for financial planning advice.
Around 80 per cent said they do not feel confident verifying or cross-checking financial advice.
Just 24 per cent said they would check a financial professional’s credentials before following their advice, while 22 per cent would investigate whether recommendations could be influenced by sponsorships, commissions or other conflicts of interest.
According to Zable, the findings show the potential risks as consumers use AI and other online sources to navigate financial decisions without always understanding if the information is regulated.