Australian Regulator Warns of Social Media and AI Influence on Young Investors

The Australian financial regulator has sounded the alarm over the increasing influence of social media personalities and artificial intelligence tools on investment decisions among young Australians.

A survey conducted by ASIC found that 63% of Gen Z respondents rely on social media platforms for financial advice, with YouTube being a particularly popular source. The study also revealed that 18% of Gen Z investors turn to AI platforms for guidance on investing.

Regulators are concerned that this trend could lead inexperienced investors to engage in risky financial behavior, particularly in volatile markets such as cryptocurrency.