Australia’s financial regulator has published findings from a Gen Z money mindset study, highlighting how social media and artificial intelligence are shaping young investors’ approaches to money. The Australian Securities and Investments Commission (ASIC) released the results of a survey conducted between Nov. 28 and Dec. 10 last year, involving 1,127 respondents aged 18–28. The study shows that roughly one in four Gen Z individuals in Australia now invest in cryptocurrency, and while there is a strong appetite for credible, trustworthy financial content, many struggle to locate it amid engagement-first material. Regulators warn that marketing on social platforms can push people toward riskier investments and, in some cases, toward scams. posted.
The regulator’s findings come as ASIC outlined a cautious stance toward crypto marketing and the broader financial-advice ecosystem. The survey reveals a generation that craves reliable content but often lands on sources built for engagement rather than accuracy. ASIC Commissioner Alan Kirkland highlighted that some marketing activity on social media is specifically designed to drive investments, and a portion of it promotes activity that could expose young Australians to scams. He warned that the volatility of crypto investments is not always understood by those advertising or encouraging participation, particularly when the audience is spread across a developed but complex financial landscape. issuing warning notices to 18 influencers for unlawfully promoting high-risk financial products and providing unlicensed financial advice is a sign of the regulator’s willingness to take action against misleading campaigns.
The survey, which included respondents aged 18–28, found that 63% rely on social media for financial information and guidance, 18% use artificial intelligence (AI) platforms, and 30% turn to YouTube as a source for financial content. On trust, the results show a nuanced picture: 56% of Gen Z say they somewhat or fully trust financial information found on social media, and 52% say the same about “finfluencers”—those online personalities who cover finance and investments. AI, however, stands out as the most trusted source among Zoomers, with 64% expressing trust in AI-enabled financial information.
ASIC calls for caution on crypto influencers
The study also shows a notable crypto footprint among Gen Z in Australia, with 23% reporting ownership of cryptocurrency. Among those who own crypto, 29% trade based on content from social media or influencer posts, a dynamic that prompted regulatory caution. The regulator has warned that influencers may set unrealistic expectations about investment returns, market volatility, and the realities of long-term investing. The findings reinforce concerns about how promotional content can shape risk perceptions and trading behavior in a sector that remains volatile and is subject to evolving regulatory scrutiny.
Speaking with the Australian Financial Review (AFR) on Sunday, ASIC Commissioner Alan Kirkland underscored the risk that marketing activity on social platforms can steer consumers toward risky crypto investments and even scams. “We’re conscious that there’s a lot of marketing activity on social media to encourage crypto investment, and our work has shown some of it is actually encouraging people to invest in scams,” he said. “It’s really important for people to be aware of those risks, because you don’t see that same volatility in other types of investments and often that volatility is driven by forces that it’s impossible for an individual sitting in Australia to understand.”
Kirkland also flagged Australian superannuation funds—the country’s $4.5 trillion retirement pool—as an area where unqualified influencers may be offering inappropriate investment guidance. “We see it most where people are lured in through social media ads and then encouraged to switch their super, because super is often people’s most valuable asset, and that’s why disreputable people often target it and why it can be so tragic if people are encouraged to put it into a risky investment,” he said.
ASIC has AI financial advice in its crosshairs
The regulator also said it is watching closely how AI tools generate financial information. Licensing requirements apply where a source is giving financial advice or making product-specific recommendations based on an individual’s circumstances. “Under Australian law, if any entity is giving financial advice, they need to be licensed. So if an AI tool, whoever’s providing it, is actually making recommendations about individual financial products, taking into account individual circumstances, that would be personal advice, so it needs to be licensed,” Kirkland noted.
Industry observers have noted that some crypto exchanges have begun integrating AI-based guidance features for customers. Platforms such as MEXC, KuCoin and Bitget have introduced AI-assisted options to accompany trading services, signaling regulators’ interest in how digital-asset markets are combining advisory capabilities with automated decision-making.
“One of the most surprising findings from this research was the degree of trust young people are placing in AI platforms,” Kirkland said, adding that the usefulness of AI depends on the specificity of questions and the quality of sources AI can draw on to provide results. The regulator’s concerns extend beyond AI itself, as evidenced by the ongoing focus on licensing requirements for those delivering financial guidance, including AI-driven advice.
ASIC’s stance on AI financial advice is set against a broader regulatory backdrop. In January, the agency signaled that crypto and AI firms exploiting licensing gaps around payments in Australia would be a top priority in 2026. The regulator’s crosshairs are not limited to platforms or influencers but extend to the legal framework that governs how digital financial products are marketed and advised upon.
The Gen Z study illuminates how a generation that grows up with social media and AI navigates risk and opportunity in a rapidly evolving financial landscape. As ASIC continues to monitor marketing practices and the deployment of AI tools in financial services, stakeholders—from investors to platform operators—will be watching closely to see how policy adapts to new behavioral realities in the digital economy.
Why it matters
First, the findings underscore a critical consumer-protection challenge: young investors actively turn to social media and AI for guidance, often without access to robust, independent sources. The potential for misinformation, exaggerated returns, or misaligned risk underscores the need for credible educational resources and transparent disclosures in fintech marketing. Regulators’ emphasis on licensing for AI-driven advice signals a move toward more formal accountability, reducing the likelihood that automated recommendations operate outside established compliance frameworks.
Second, the study highlights the evolving risk landscape around crypto participation among younger demographics. With 23% of Gen Z reporting crypto ownership and 29% of them trading as a result of influencer content, the regulatory focus on finfluencers and marketing practices gains renewed urgency. This is particularly salient as the Australian market approaches broader financial-technology innovations and digital asset service providers push deeper into mainstream finance.
Finally, the integration of AI bots by crypto and fintech platforms is prompting regulators to rethink the boundaries between information and advice. The balance between innovation and consumer protection will likely shape future licensing, disclosure, and advertising standards. In Australia, that balance currently hinges on whether AI-driven guidance crosses into personalized financial advice, a threshold that triggers licensing requirements and stricter oversight.
What to watch next
- ASIC’s ongoing monitoring of social-media marketing for financial products and potential enforcement actions against misleading campaigns.
- Any new guidance or licensing requirements addressing AI-based financial advice and tools that tailor recommendations to individuals.
- Regulatory scrutiny of crypto and fintech platforms deploying AI-based trading guidance or “trading partners.”
- Regulatory priorities in 2026 around payments licensing and licensing expectations for AI-enabled financial services.
Sources & verification
- Australian Securities and Investments Commission, Gen Z and money advice study — 26-049mr: https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-049mr-asic-urges-gen-z-to-sense-check-money-advice-as-social-media-fuels-riskier-financial-decisions/
- Australian Financial Review interview with ASIC Commissioner Alan Kirkland on Gen Z and AI trust: https://www.afr.com/wealth/personal-finance/gen-z-puts-trust-in-ai-for-financial-advice-asic-says-don-t-20260311-p5o9iy
- ASIC cracks down on unlawful finfluencers in global push against misconduct: https://www.asic.gov.au/about-asic/news-centre/news-items/asic-cracks-down-on-unlawful-finfluencers-in-global-push-against-misconduct/
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