FCA warns consumers against relying on AI chatbots for financial advice
The Financial Conduct Authority urged consumers to treat AI-generated financial guidance with caution and to verify with regulated sources.
By Money Guide editorial team
Published:
The Financial Conduct Authority issued fresh guidance this month urging consumers to treat financial information generated by AI chatbots and large language models as a starting point rather than a regulated recommendation.
Key warnings included: AI outputs can be confidently wrong about specific allowances, thresholds and product rules; chatbots are not authorised to give personal recommendations and cannot be held to the Consumer Duty; and providers cannot be sued or complained about through the Financial Ombudsman for losses arising from AI-generated guidance.
Consumers wanting personalised advice are encouraged to use FCA-authorised advisers, free regulated guidance services such as MoneyHelper and Pension Wise, or charity advice services including Citizens Advice and StepChange.
Free factual sources — including gov.uk, MoneyHelper and the Bank of England — remain the recommended starting point for general information about rates, thresholds and rules.