The Australian Securities and Investments Commission (ASIC) released a survey on March 16 examining the financial behavior of Generation Z (ages 18-28), based on 1,127 respondents interviewed from November to December 2025. The finding is blunt: this generation makes investment decisions based on algorithm-recommended content, which is designed to maximize engagement, not returns.
AI Trust: 64% of Young People Trust Algorithms Over Financial Advisors
63% of respondents use social media for financial information, 30% turn to YouTube, and 18% use AI platforms. Trust levels: 56% trust or completely trust financial content on social media, 52% trust financial influencers (finfluencers). AI tops the list at 64%.
ASIC Commissioner Alan Kirkland told the Australian Financial Review that the high trust in AI tools is "one of the most surprising findings." The regulator's position is clear: any entity providing specific financial advice in Australia must hold a license, and AI tools are no exception.
Crypto Holdings: 23% of Gen Z Own Crypto, Nearly One-Third Follow Influencers
The report shows 23% of Australian Gen Z currently hold cryptocurrency. Among them, 29% make trading decisions based on social media and influencer content.
ASIC already issued warnings to 18 suspected violators in June last year, accusing them of illegally promoting high-risk financial products and providing unlicensed advice. Kirkland added that the regulator is now closely monitoring crypto marketing campaigns on social media, some of which have been linked to scams.
"We see a lot of marketing activity on social media pushing crypto investments, and our work has shown some of it is actually directing people into scams," Kirkland said.
He also flagged Australia's superannuation funds, a AUD 4.5 trillion market, as a new target for unlicensed influencer advice.
Structural Gap: Genuine Demand for Information, Misaligned Supply
The ASIC report notes that Gen Z has a strong demand for trustworthy financial content, but what they find is often designed for engagement rather than accuracy. This gap is at the heart of regulatory concern.
Exchanges like MEXC, KuCoin, and Bitget have already integrated AI bots offering personalized trade suggestions or "trading partner" features. ASIC warned in late January that any crypto or AI firms exploiting regulatory gray areas in Australian payment laws will be a priority target for enforcement in 2026.
The trend of Z世代 trusting AI more than traditional advisors will not reverse because of a single report. ASIC can impose penalties and license requirements, but as long as AI integration outpaces licensing, that 64% trust figure remains a vulnerability without a corresponding safety net.