New research focused on 18- to 40-year-olds who own or are considering investments showed that 56% trust AI tools, more than TV and radio (47%), press (46%) or social media influencers (29%).

And people are getting more comfortable, with two-thirds expecting to lean on AI even more over the next year.

But the research from the FCA also revealed that these investors may be misunderstanding the level of protection if they rely on AI to support their investing decisions.

Almost half (44%) mistakenly believe AI-generated financial information is regulated, with about a third (32%) wrongly thinking htey would get compensation from the Financial Services Compensation Scheme or the Financial Ombudsman Service is AI advice is wrong.

More than a third (38%) believe that it is fine to make an investment decision based solely on the outputs of AI.

This is despite almost three quarters (73%) know that AI can provide inaccurate information. And 86% understood the need to check the sources referenced when using AI. It’s vital investors remember this when they’re using AI to research an investment.

General purpose AI chatbots are not regulated, although tools which are specifically set up to provide financial advice would be likely to fall within the FCA’s remit.

“AI can help you research companies, understand jargon or explore options before you make a decision,” Lucy Castledine, director of consumer investments at the FCA, said.

“But you need to understand how you’re protected and continue to use your own judgement. Our InvestSmart website can also help you make more informed decisions.”