Australia’s financial regulator is sounding the alarm: Gen Z investors are placing dangerous trust in artificial intelligence and social media “finfluencers” for financial guidance.
The Australian Securities and Investments Commission (ASIC) revealed that 23% of Australians aged 18 to 28 now own cryptocurrency. Nearly one-third of those investors make trades based on influencer content or social media posts.
A recent survey of 1,127 young adults found 63% use social media for financial information, while 18% turn to AI platforms-64% of whom say they “somewhat or completely trust” AI over traditional sources.
ASIC Commissioner Alan Kirkland warned that unlicensed influencers often promote high-risk or fraudulent investments, especially targeting Australia’s $4.5 trillion superannuation system.
He emphasized that under Australian law, any entity-including AI tools-providing personalized financial recommendations must be licensed. ASIC is now closely monitoring AI-driven financial advice and crypto marketing tactics exploiting regulatory gray areas.