Australia’s corporate and financial regulator, the Australian Securities and Investments Commission (ASIC), has issued a urgent public warning over growing reliance on artificial intelligence and unvetted social media influencers for financial guidance, as new survey data confirms crypto ownership among young Australians has surged to one in four. Appearing before a Senate estimates hearing on Friday, ASIC Commissioner Alan Kirkland acknowledged that generative AI tools do carry legitimate value for answering broad, general financial questions — from explaining how compound interest functions to breaking down the structure of exchange-traded funds (ETFs). But he drew a sharp line between general educational information and personalized investment guidance, stressing that AI systems are not equipped to deliver tailored recommendations for an individual’s unique financial circumstances, and urging consumers to exercise extreme caution when using the technology for investment decisions. Recognizing that the shift toward AI and social media for financial information is an irreversible new reality, Kirkland confirmed that ASIC has adapted its outreach strategy to meet younger audiences where they already are. The regulator has ramped up its own social media presence, rolling out educational posts and short-form video content on platforms popular with youth such as Instagram, and is continuously testing new engagement methods to deliver accurate, accessible financial information directly to young demographics. A core area of regulatory focus for ASIC in recent years has been addressing problematic activity from so-called “finfluencers” — social media creators who share financial content and investment advice with their followers. Kirkland clarified that not all finfluencer activity raises red flags, but any individual operating within Australia who provides paid or personalized financial advice is legally required to hold an Australian financial services license, or operate under authorization from a licensed entity. Over the past two years, ASIC has launched two rounds of enforcement action targeting finfluencers suspected of operating in breach of national financial regulations, with the efforts coordinated as part of a global collaborative campaign alongside financial watchdogs in multiple international jurisdictions. The new warning comes against a shifting backdrop of growing retail investment activity among younger Australians, coinciding with the Albanese government’s ongoing push for tax reforms that will expand capital gains tax obligations to a far larger number of retail asset sales. During the hearing, ASIC presented findings from its latest national survey, conducted between November and December of last year, which found that 18 percent of Australians between the ages of 18 and 28 now hold direct shares, with the share of young Australians owning cryptocurrency reaching a striking 25 percent. Liberal Senator Clare Chandler raised critical questions during the hearing, asking whether the shift toward unregulated AI and finfluencer guidance stems from a widespread lack of access to affordable, licensed traditional financial advice for younger demographics, and whether Treasurer Jim Chalmers had initiated any contact with ASIC following the release of the survey’s findings. In response, Kirkland noted that the survey did not collect data on the underlying drivers of shifting consumer financial habits, and declined to comment on any potential outreach from the Treasurer, taking that question on notice for future response.
One in four young Australians have crypto, 18 per cent have shares, Senate estimates told
