The Australian Securities and Investments Commission has released new guidance on the use of artificial intelligence for financial information, in response to the increasing adoption of publicly available AI tools among consumers seeking money advice.
The guidance, published through ASIC’s Moneysmart platform, outlines both the potential uses and limitations of AI systems in financial decision-making. The move comes as young users increasingly look to AI alongside social media and digital platforms to interpret financial topics.
New research cited by ASIC found that 18 per cent of Gen Z Australians already use AI tools for financial information, and 64 per cent say they trust these platforms to provide them with money advice. About 16% said they had complete trust, and 63% said they were confident in the accuracy of AI-generated financial guidance.
Why is ASIC working on AI in financial advice?
The regulator’s guidance reflects growing concerns about how consumers interpret and act on information generated by general-purpose AI tools. Although these systems can process large amounts of data and provide answers quickly, they are not designed to provide regulated financial advice.
ASIC noted that AI tools could be useful for general learning, such as summarizing complex financial topics and answering a wide range of questions. However, this guidance emphasizes that the output may be incomplete, inaccurate, or unsuitable for individual circumstances.
The growing reliance on AI among young users highlights the need for clearer boundaries between educational tools and professional advice. This finding suggests that a significant proportion of users may have a level of trust in AI that exceeds its intended use.
This guidance positions AI as one of several sources of information, rather than an independent decision-making tool. Consumers are encouraged to compare information across channels and consider the limitations of automated responses.
What does the new guidance recommend?
Moneysmart’s guidance describes specific situations in which AI tools may be appropriate and situations in which additional validation is required. AI can help you understand common financial concepts, consider budgeting approaches, and review public information.
However, ASIC advises that users should seek information from independent and reliable sources before acting on output generated by AI. We recommend that you consult a licensed advisor for decisions involving investments, financial planning, or material commitments.
The guidance also highlights that unless explicitly provided, AI systems do not have access to a user’s full financial picture, which may limit the relevance of their answers. This creates a risk that users will apply general advice to specific situations without proper context.
ASIC’s approach reflects a broader regulatory focus on consumer protection in a digital environment, where information is increasingly delivered through automated systems rather than traditional advisory channels.
How does this fit into ASIC’s Moneysmart strategy?
The release of AI-related guidance coincides with an update to the Moneysmart platform, which is celebrating 15 years since its launch. The redesigned website aims to improve accessibility and provide consumers with a clearer source of independent financial information.
ASIC positions Moneysmart as a reference point in an environment where users are exposed to a wide range of information sources, including AI tools, social media and online content. By providing structured guidance, the platform attempts to offer alternatives that are not related to product promotion.
This update reflects changes in how consumers interact with financial information. Digital channels have expanded access to content, but they have also introduced variations in quality and reliability. Regulators are increasingly focused on helping users navigate this situation.
The inclusion of AI guidance indicates that the automated system is considered a core part of the environment. As adoption increases, regulators are likely to continue to define how these tools should be used in relation to financial advice.
The broader implication is that AI will continue to be part of the information ecosystem, but its role will likely fall within clear boundaries. Consumers can use it to support learning and research, but regulated advice and verified sources of information remain central to the decision-making process.
remove
ASIC’s guidance highlights that while the use of AI in financial decision-making is increasing, its limitations are being reinforced. Consumers are encouraged to treat AI as a learning tool and verify output through trusted sources before taking action.
