FCA sounds the alarm on rise of unregulated AI financial advice

The City watchdog is calling on AI providers to go further in protecting consumers as more people turn to the technology to make financial decisions. The Financial Conduct Authority (FCA) is urging AI firms to do more to help consumers who are increasingly relying on generic platforms and chatbots, such as Gemini and Chat GPT, for information and investment advice. Brits have flocked to chatbots for advice amid the industry wide push to get more people investing in the stock market, while traditional financial advice often remains out of reach.  Regulated firms have also begun integrating AI into their services. However, 40 per cent of young investors mistakenly believe chatbots are regulated by the FCA, leaving them unable to access help or compensation when advice goes wrong. “This [tech] can significantly widen access to financial tools and information. But it can also blur the boundary between regulated and unregulated activity, and the protections consumers receive,” s