The Australian Securities and Investments Commission (ASIC) has issued a clear warning to artificial intelligence platforms and digital channels, highlighting growing concerns around the provision of unregulated financial advice.
Recent research conducted in late 2025 has revealed that AI is rapidly becoming a primary source of financial information for younger Australians. Approximately 18 per cent of Gen Z individuals, aged between 18 and 28, are now turning to AI platforms for financial guidance. Notably, 64 per cent of those users report trusting the information they receive.
This growing reliance on AI presents a significant regulatory challenge. ASIC has emphasised that the quality of AI-generated financial information is highly dependent on the specificity of user inputs and the credibility of underlying data sources. As such, outcomes can vary significantly and may not always be appropriate or accurate for individual circumstances.
From a regulatory perspective, ASIC has reinforced that any form of financial advice provided in Australia must comply with licensing requirements. Where an AI platform delivers recommendations that take into account an individual’s personal circumstances or suggests specific financial products, this may constitute personal advice under Australian law and therefore requires appropriate licensing.
Alongside AI, social media continues to play a dominant role in shaping financial behaviour among younger investors. Around 63 per cent of Gen Z individuals use social media as a source of financial information, with more than half indicating they trust the content they encounter. However, ASIC has raised concerns that much of this content is designed to maximise engagement rather than provide accurate or balanced financial guidance.
The regulator has identified a clear link between social media activity and poor financial outcomes, particularly where users are directed towards speculative or inappropriate investment opportunities. Of particular concern is the use of targeted advertising to promote high-risk superannuation strategies or investment schemes, some of which have failed or resulted in significant losses in recent years.
Cryptocurrency has also emerged as a key area of focus. Ownership among Gen Z investors has risen sharply, with nearly one-quarter now holding crypto assets, more than double the level seen in 2023. A significant proportion of these investors report making decisions based on social media content or influencer recommendations. At the same time, exposure to crypto-related advertising remains high, with many individuals reporting direct outreach encouraging investment.
ASIC has highlighted the risks associated with this environment, noting that digital platforms can be used to promote misleading or fraudulent investment opportunities. The regulator is particularly concerned about the difficulty in controlling online advertising and the potential for scams to be disguised as legitimate investment offers.
The broader issue reflects a shift in how financial information is accessed and consumed. While digital platforms can be valuable tools for education and awareness, they are not a substitute for tailored, regulated financial advice. The combination of high trust, easy accessibility, and varying information quality creates an environment where individuals may unknowingly make decisions that are not aligned with their long-term financial objectives.
As this landscape continues to evolve, regulatory scrutiny is expected to increase, particularly around the role of AI and social media in influencing investment behaviour.
If you would like guidance tailored to your personal circumstances, or to better understand your investment options, Cadre Capital Partners can assist with providing professional, licensed financial advice.