Australia warns of AI, ‘finfluencers’ as Gen Z crypto ownership hits 23%

Australia’s securities regulator said two-thirds of Gen Zs are using social media to make decisions about their financial future, leading to “riskier” financial decisions. 

Australia’s financial regulator has urged young investors not to rely on social media influencers and artificial intelligence chatbots to make financial decisions, according to a study that also found that one in four “Gen Zs” invest in crypto.

The Australian Securities and Investments Commission (ASIC) the results of a survey on Sunday, finding that Gen Z has high levels of trust in “often unreliable sources,” which has contributed to riskier financial decisions.

“Moneysmart’s Gen Z study found that while Gen Z has a strong appetite for reputable and trustworthy financial content, many struggle to find it – and their search often leads them to sources designed for engagement rather than accuracy,” said ASIC. 

ASIC took action against influencers over their financial social media content last year in June, issuing warning notices to 18 influencers “suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice.”

The latest survey, conducted between Nov. 28 and Dec. 10 last year with 1,127 respondents between 18 and 28, found that 63% of the group uses social media for financial information and guidance, while 18% use artificial intelligence (AI) platforms and 30% said they use YouTube specifically.

It also found that 56% of Gen Z say they “somewhat or completely trust” financial information on social media, with 52% saying the same of “finfluencers” - social media influencers primarily covering financial or investment niches who appear well-versed in finance. 

AI, however, was the most trustworthy among Zoomers, at 64%.

ASIC calls for caution on crypto influencers

The survey also showed that 23% of Gen Z now own crypto in Australia, with 29% of these trading based on social media and influencer content, prompting a warning that influencers may “set unrealistic expectations” about investment returns, market volatility, and the intricacies of long-term investing.​