{
  "id": 3611777,
  "title": "Use AI for investing at your own risk, warns watchdog",
  "url": "https://urgent.news/2026/08/26/use-ai-for-investing-at-your-own-risk-warns-watchdog",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-26T23:01:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/use-ai-for-investing-at-your-own-risk-warns-watchdog/"
  },
  "original_language": "en",
  "account": "The Financial Conduct Authority (FCA) has cautioned British individuals who rely on artificial intelligence (AI) for investment guidance that they may lack protection in case of adverse outcomes. A recent survey revealed that 80% of inexperienced investors utilize AI tools to assist with investment decisions, driven by the growing popularity of online chatbots. Young adults aged 18 to 40 are particularly drawn to AI-driven solutions, with more than half trusting these digital assistants to make investment choices on their behalf. However, the watchdog emphasizes that the FCA does not regulate AI-generated financial information. Consequently, 44% of Brits mistakenly believe they are covered by the Financial Services Compensation Scheme or the financial ombudsman in the event of AI-driven investment errors. FCA Director of Consumer Investments, Lucy Castledine, clarified that AI can be beneficial for research, understanding industry jargon, and exploring investment options, but stressed the importance of maintaining personal judgment and understanding the level of protection provided. Financial advisers express concern that AI cannot replicate the tailored advice provided by human professionals, who assess an individual's specific circumstances, risk tolerance, and long-term goals. Rob Hillock, head of personal financial planning at Broadstone, emphasized that AI cannot fully replace the personalized evaluation of an investment's suitability for an individual's unique situation. Graeme Devlin, head of risk, regulation, and compliance at Capco, urged wealth managers to go beyond merely educating clients about AI's limitations and to provide comprehensive, personalized advice that considers the broader financial landscape and aligns with clients' aspirations and risk appetite. Wealth managers must demonstrate that they can offer more than just another answer by understanding clients' financial positions, goals, and risk tolerance, and then deliver tailored advice that accounts for these factors and ensures ongoing accountability.",
  "summary": "The financial watchdog has warned Brits using AI for investment advice that they may not be protected if things go wrong as more people turn to online chatbots. Four in five inexperienced investors admitted to using AI tools for help with their investment decision, according to the latest research from the Financial Conduct Authority (FCA). [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}