Australians are at greater risk of scams and dodgy providers as they reveal a deep trust in AI for financial advice, the life insurance industry has warned.
Three in five Aussies said they would trust financial advice received from AI-powered programmes such as ChatGPT, according to independent research commissioned by the Council of Australian Life Insurers (CALI).
“This is not just asking AI to draft an email or fix some grammar. This is real life. We cannot leave Australians with no other option but to put their financial future in the hands of an AI chatbot,” said CALI CEO Christine Cupitt.
The data reveals that AI is now a popular tool of choice for Australians when they need help to make financial decisions, as the Federal Government continues to delay introducing the second part of its financial advice reforms.
“Australians want and need advice that is simple, accessible and affordable. They should not have to turn to AI to get it,” said Ms Cupitt.
Insurance advice from AI
More than one in five Australians surveyed said they thought about using AI to get advice on their life insurance in the past three months alone, according to CALI. Almost the same proportion considered contacting a life insurer directly.
Alarmingly, almost 20% actually received life insurance advice from programmes such as ChatGPT in the past quarter.
CALI warns that this growing dependence on informal channels puts working Australians at greater risk of making life-changing financial decisions based on information from unregulated sources.
This is backed up by new data released by the financial services regulator, which shows that one in five GenZs are using AI to make decisions about their financial future. The Australian Securities and Investments Commission has warned that while GenZs have “a strong appetite for reputable and trustworthy financial content, many struggle to find it – and their search often leads them to sources designed for engagement rather than accuracy”.
The independent research commissioned by CALI shows that more than half of Australians would be more likely to consider getting professional advice on their life insurance if it were more affordable and easier to access.