Asic warns Gen Z to ‘sense-check’ money advice as social media and AI reshape decisions

asic is urging young Australians to pause and sense‑check the financial information they find online as social media algorithms and AI tools become major influences on money decisions. The financial regulator’s research shows a large share of Gen Z turn to social platforms for investment guidance, while a notable minority use AI to inform choices.

What happens when Asic raises the alarm?

ASIC’s survey of young Australians found that nearly two out of three respondents have used social media to seek financial advice and around one in five have used AI tools in making financial decisions. The research recorded that a majority of respondents place some trust in financial content on social platforms, and many also express confidence in AI platforms.

Specific findings highlighted include a majority who have searched social media for money information, roughly half who say they trust finfluencers, and measurable engagement with video platforms. The research also found that almost a quarter of young people own cryptocurrency, and within that group a substantial share takes short‑term speculative approaches to at least some crypto holdings; a sizeable minority say they trade on the basis of social media or influencer content. ASIC emphasised that relying on narrow, promotional or algorithmically amplified sources can raise financial risk and set unrealistic expectations about returns and volatility.

Alan Kirkland, ASIC Commissioner, warned that “Financial information on social media and accessed through AI tools can be incomplete, promotional or misleading. ” The regulator encouraged young people to balance what they see online with credible, evidence‑based material and reminded them that free, independent guidance is available through Moneysmart.

What if young people keep trusting finfluencers and AI?

• Best case: More Gen Z combine social discovery with established guidance. If young people use social media to find ideas but verify claims with independent tools like Moneysmart, short‑term speculation falls and financial outcomes improve. Winners: young investors who learn to cross‑check information. Losers: predatory or low‑quality content producers facing greater scrutiny.
• Most likely: Continued high use of social media and AI for financial ideas with mixed verification. Many will access both professional sources and engagement‑driven content; some will benefit, others will face preventable losses when short‑term trends reverse. Winners: service providers that blend engaging delivery with rigorous advice; Losers: inexperienced traders who rely solely on popular content.
• Most challenging: Heavy reliance on unverified social and AI content drives increased speculative trading and mismatched expectations, particularly in volatile assets like cryptocurrency. This outcome would amplify regrets and the need for remedial guidance. Winners: actors who monetise short‑term attention; Losers: young people exposed to misleading promotions and limited disclosure.

What should readers do next?

Practically, the regulator’s message is straightforward: pause, sense‑check and verify. When financial claims appear on social platforms or from AI tools, compare them with evidence‑based resources and think about the long‑term realities of investing rather than short‑term popularity. ASIC has signposted Moneysmart as a source of free, independent guidance on budgeting, investing, superannuation and scams. The immediate takeaway for young Australians is to treat social content as a starting point for research, not a substitute for verification — and to use established, independent tools before acting on recommendations. That is the clear, actionable line from asic