AI and social media the financial adviser of choice for Gen Z

By Vanguard

Investing strategy

 

As Gen Z investors embrace social media and AI for financial advice, they are being urged to tread carefully

Gen Z investors are turning to social media and AI to make decisions about their financial future, and the trend is worrying Australia’s corporate watchdog.

According to research from ASIC Moneysmart, almost two-thirds of Gen Z are using social media, and almost one in five lean on AI for financial advice. In response, ASIC has urged young Australians to sense check the information they see online and make sure it is balanced by credible sources of information.

The ASIC warning is based on a national survey in 2025 of people aged 18 to 28 that was designed to get a sense of their go-to sources of financial advice. The survey, conducted for ASIC by market researcher YouGov, reveals that:

• 63% of Gen Z respondents use social media for financial information and guidance, while 30% use YouTube and 18% use AI platforms
• More than half of Zoomers say they somewhat or completely trust financial information on social media (56%) and from ‘finfluencers’ (52%), and 64% say they trust AI platforms.

While Gen Z may want trustworthy financial advice, some are going down a path that leads them to sources that may prioritise engagement over accuracy.

 

A silver lining

While these behaviours highlight risks around unlicensed or inaccurate information, they also point to a generation that is actively engaging with their financial future at an earlier stage.

The survey found almost one in five Gen Z investors (18%) held shares or ETFs. This suggests many young Australians are taking steps to participate in markets from a young age, which may support longer-term financial goals.

 

Stick to the fundamentals

In the future, there is likely to be a place for financial education on social media platforms, as well as the use of AI tools that can summarise complicated investing information. To get more sophisticated financial guidance, however, individuals may choose to seek the assistance of a licensed financial adviser for more tailored guidance and to support their financial decision making.

A common principle in investing is diversification, where investments are spread across different assets to help manage risk. This may include considering an asset allocation, such as a mix of growth assets like shares and defensive assets like bonds, appropriate to individual goals and circumstances.

Gen Z and other investors may be better positioned if they adopt these investing basics, while also remaining cautious about the quality of information shared by online influencers.