Ausie Survey Reveals Gen Z's Reliance on AI and Social Media for Financial Decisions

A survey by Australia's Moneysmart has found that 16% of Generation Z in the country "completely trust" artificial intelligence platforms with their financial decisions. The study, which polled 1,127 Australians aged 18 to 28, also revealed that 56% trust financial information from social media, and 52% trust content from financial influencers.

Data from the Australian Securities and Investments Commission (ASIC) shows 63% of respondents use social media for financial information, with 30% using YouTube and 18% using AI platforms. For comparison, 60% still consult formal or professional sources, and about 50% turn to family and friends.

ASIC Commissioner Alan Kirkland expressed concern over the trend, stating, "What they see on social media is usually shaped by algorithms designed to drive clicks and views rather than provide accurate information." He warned that such information "can be incomplete, promotional, or misleading."

The regulator is particularly concerned about cryptocurrency investments within this demographic. The survey found 23% of Gen Z respondents own crypto, with 66% of those engaging in short-term, speculative trading. Furthermore, 29% of crypto-investing Gen Zers make trades based on social media or influencer content.

Kirkland added, "Short-term or speculative trading based on what's popular online carries real risks, particularly in volatile markets like crypto." The survey noted that 72% of young Australian crypto investors were encouraged by social media ads in the past year, and 41% were approached by someone offering to help them invest.