ASIC cautions Aussie Gen Z about financial advice from socmed and AI

Trust from unreliable sources is contributing to riskier financial decisions, ASIC warned.

The Australian Securities and Investments Commission (ASIC) has cautioned young Australians about money advice obtained from social media and artificial intelligence (AI).

ASIC cited a Moneysmart study, which said that whilst Gen Z (aged 18-28) have a strong appetite for reputable and trustworthy financial content, their search often leads them to sources designed for engagement rather than accuracy.

This “high level of trust” by some on often unreliable sources is contributing to riskier financial decisions, said ASIC.

About 63% of Gen Z respondents in the study said they use social media for financial information or guidance; 30% use YouTube; and 18% use AI platforms.

ASIC warned that “relying on a narrow range of sources—particularly unverified or promotional content—can increase financial risk, especially in an environment where markets and online trends move quickly and information is rarely tailored to individual circumstances.”

ASIC also warned that due to fundamental differences between cryptocurrency and other forms of investment, it may set unrealistic expectations about returns, price volatility and the realities of long-term investing.