Australia sounds alarm as Gen Z turns to AI for crypto trading tips

Australia’s financial regulator has raised concerns about the growing influence of social media personalities and artificial intelligence tools on the investment decisions of young Australians.

A new study from the Australian Securities and Investments Commission (ASIC) suggests many Gen Z investors rely on digital platforms for financial guidance, including crypto trading ideas.

The findings show a significant share of young people trust information shared online despite the risk of misleading advice.

Regulators say this trend could push inexperienced investors toward risky financial behaviour, particularly in volatile markets such as cryptocurrency.

Social media financial advice

ASIC released results of a survey conducted between Nov. 28 and Dec. 10 last year involving 1,127 respondents aged between 18 and 28.

According to the survey, 63% of Gen Z respondents turn to social media platforms to search for financial advice and investment guidance.

YouTube remains one of the most widely used channels, with 30% of respondents relying on the platform for financial content.

Artificial intelligence tools are also emerging as a source of financial guidance, with 18% of the group saying they turn to AI platforms to understand investing.

Trust levels appear relatively high. The study found that 56% of Gen Z respondents somewhat or completely trust financial information they encounter on social media.

Meanwhile, 52% said they trust “finfluencers,” online personalities who discuss financial markets and investment strategies.

AI ranked as the most trusted source, with 64% of respondents saying they rely on AI platforms for financial information.

Crypto investing trends

The survey also highlighted the growing presence of cryptocurrency in the portfolios of young Australians.

According to the study, 23% of Gen Z respondents now hold crypto assets.

Within that group, 29% said their trading decisions are influenced by social media posts or financial influencers.

Regulators warned this trend can create unrealistic expectations about profits and overlook volatility associated with digital asset markets.

ASIC has previously taken action against social media personalities promoting high-risk financial products.

In June last year, the regulator issued warning notices to 18 influencers suspected of unlawfully promoting financial products or providing financial advice without the required licence.

Scams and retirement risks

ASIC commissioner Alan Kirkland told the Australian Financial Review that regulators are monitoring marketing campaigns on social media encouraging people to invest in crypto.

Authorities identified cases where such promotions were linked to scams targeting inexperienced investors.

Kirkland also pointed to Australia’s superannuation system, a retirement savings sector worth about $4.5 trillion.

Some advertisements encourage people to switch their superannuation funds into higher-risk investments.

AI investment advice concerns

ASIC is also examining how artificial intelligence platforms provide financial information to users. Regulators are watching whether AI tools cross into regulated financial advice.

Australian law requires any entity providing financial advice to hold the appropriate licence. This could apply if an AI system recommends specific financial products based on an individual’s circumstances.

The issue is becoming more relevant as crypto exchanges introduce AI trading assistants.

Platforms such as MEXC, KuCoin and Bitget already offer automated trading guidance designed to help users navigate digital asset markets.

ASIC warned in late January that firms attempting to exploit licensing grey areas involving payments, crypto services or AI technology could face regulatory scrutiny during 2026.