ASIC Warns Gen Z Over AI Finfluencers as Gen Z Owns 23% of Crypto

ASIC has conducted a comprehensive survey of 1,127 Gen Z Australians aged 18-28, revealing significant financial behaviors and preferences among this demographic.

“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”

Cointelegraph

The research shows that 63% of Gen Z relies on social media for financial information and guidance.

Cointelegraph

Additionally, 30% specifically turn to YouTube for financial content.

These findings demonstrate how young Australians are increasingly turning away from traditional financial advice sources toward more accessible, technology-driven alternatives for managing their finances and investment decisions.

Trust levels among Gen Z vary significantly across different financial information sources, with AI platforms emerging as the most trusted medium.

According to ASIC's research, 64% of Gen Z express trust in AI-enabled financial information, making it the most trusted source by a significant margin.

MENAFN

Social media financial content is trusted by 56% of respondents, while 52% trust finfluencers - social media personalities who cover finance and investment topics.

This trust pattern suggests that while Gen Z actively engages with social media for financial information, they place even greater confidence in AI-generated content.

Cryptocurrency ownership among Gen Z Australians has reached significant levels, with 23% of young Australians now owning digital assets.

“ASIC is urging young Australians to 'sense check' the information they see online, as new research shows nearly two thirds of Gen Zs are using social media and about one in five are using AI to make decisions about their financial future”

Mirage News

Among those who own crypto, 29% report making trading decisions based on content from social media or influencer posts.

This high rate of social media-influenced trading has raised regulatory concerns about the potential for unrealistic expectations about investment returns and market volatility.

ASIC Commissioner Alan Kirkland has specifically warned that influencers may be setting inappropriate expectations about the realities of long-term investing.

ASIC has issued strong warnings about the risks posed by finfluencers and social media marketing in the financial sector.

Commissioner Alan Kirkland has highlighted that some marketing activity on social media is specifically designed to drive investments toward high-risk products, with some campaigns actually encouraging people to invest in scams.

TradingView

The regulator has already taken action by issuing warning notices to 18 influencers for unlawfully promoting high-risk financial products and providing unlicensed financial advice.

Kirkland specifically emphasized that the volatility of crypto investments is not always understood by those advertising or encouraging participation.

ASIC is paying particularly close attention to the emerging field of AI-powered financial advice and information services.

“Australia’s financial regulator is sharpening its warnings on artificial intelligence, social media “finfluencers,” and crypto scams as younger investors turn to digital assets in large numbers”

www.thedailycoins.io

Commissioner Kirkland has stated that the regulator is 'watching very closely' what types of financial information are being derived from AI tools, warning that licenses are required for any entity providing financial advice that represents concrete recommendations.

Cointelegraph

Under Australian law, if an AI tool makes recommendations about individual financial products while taking into account individual circumstances, it would be considered personal advice and would require licensing.

This concern comes amid a growing trend of crypto exchanges integrating AI bots into their services to offer personalized trading guidance.

ASIC's regulatory priorities for 2026 clearly indicate that crypto and AI firms exploiting licensing gray areas around payments will be a major focus for the Australian regulator.

The commissioner's warnings reflect broader concerns about the intersection of emerging technologies and financial regulation.

The survey findings and regulatory response highlight the challenge of protecting young, inexperienced investors who may be particularly vulnerable to misleading marketing.

As digital currencies and AI-powered financial tools continue to evolve, ASIC appears determined to establish clear boundaries and ensure that all entities providing financial services or advice operate within the regulatory framework.