For the first time, more young Australian investors are taking investment advice from artificial intelligence (AI) than from a financial professional.

The Australian Securities Exchange’s Australian Investor Study reports that out of investors aged 18 to 29, 24% had used an AI tool for investment advice in the past year, and 19% had used a financial planner or adviser.

By comparison, 19% of investors aged 30 to 49 used AI for advice, just 6% of 50 to 64-year-olds, and 1% of over 65s.

Chatbots are free, always available and happy to answer any money question.

They are also unlicensed, accountable to no one, prone to confident mistakes, and sit outside the complaints and compensation schemes built for people who get bad advice.

Why Gen Z invests differently

Researchers use a framework called “generational cohort theory” to explain why generations behave differently. The big events you experience growing up shape your values, beliefs and attitudes, including how you spend and invest.

Gen Z grew up with the global financial crisis, the COVID pandemic and a worsening climate outlook. They are the “anxious generation”. It changed how they think about money.

Previous generations saved from a salary, bought a home and then started investing once they felt secure. Shares were a second layer of wealth, built on a........

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