About one in four young Australians own cryptocurrency, while 18 per cent hold shares, according to a survey cited at a Senate estimates hearing. The Australian Securities and Investments Commission (ASIC) has warned that more people are turning to social media and artificial intelligence for financial information, prompting increased regulatory scrutiny.
ASIC Commissioner Raises Concerns Over AI and Social Media Advice
ASIC Commissioner Alan Kirkland acknowledged that AI models can be useful for general financial guidance, such as explaining compound interest or exchange-traded funds (ETFs). However, he urged caution, stating, "They're not so good at giving you advice about how to invest your money, and we urge significant caution about that."
Speaking at a Senate estimates hearing on Friday, Mr Kirkland noted that many people are turning to AI and social media, and the regulator must "acknowledge that as a reality." ASIC has released information on which questions AI tools can help with and which they cannot.
Increased Social Media Engagement by ASIC
Mr Kirkland revealed that ASIC has ramped up its social media activity, particularly through posts and short videos on platforms like Instagram. "We're constantly experimenting with different ways to engage with young Australians and trying to improve how we get that information out," he said.
The regulator has also focused on "some behaviour of concern" by social media "finfluencers"—influencers providing financial information. While offering general information is not necessarily a concern, giving financial advice without a license or authorisation is illegal in Australia. Over the past two years, ASIC has undertaken two waves of enforcement action against finfluencers potentially breaching the law, as part of globally coordinated efforts with regulators in other jurisdictions.
Young Australians Turning to Crypto and Shares
The hearing also highlighted a survey by ASIC showing that 18 per cent of Australians aged 18 to 28 own shares, and 25 per cent own cryptocurrency. This comes as the Albanese government pushes ahead with tax reforms that will affect the sale of many assets through changes to the capital gains tax discount.
Liberal Senator Claire Chandler questioned whether younger Australians had turned to AI or finfluencers because they were locked out of affordable traditional financial advice. She also asked if Treasurer Jim Chalmers had reached out since the report was published. Mr Kirkland said he would take any contact with the Treasurer on notice and noted that the survey did not gather reasons for changing habits.
