If an AI tool gives bad financial recommendations, you cannot claim compensation through the Financial Ombudsman Service – here are the steps to protect yourself
More than five million Brits have been harmed by wrong advice from an AI chatbot – including financial losses.
New research from comparison website Uswitch.com also reveals how people have experienced health scares and even damaged relationships after confiding in the internet.
More than two in five (43%) UK adults have asked a chatbot for advice on something personal – and almost half (48%) said they trust its advice as much as, or more than, a friend or family member. But nearly a quarter (23%) of AI users said incorrect chatbot advice has caused them a real problem.
Almost one in five (18%) UK adults – nearly ten million people – have acted on a chatbot’s personal advice with no second opinion, climbing to two in five (40%) of Gen Z. If an AI tool gives bad financial recommendations, you cannot claim compensation through the Financial Ombudsman Service.
Chatbots will soon be included in the Online Safety Act, a law that makes social media companies and search engines responsible for user safety. Meanwhile, new EU rules require chatbots to remind users they are machines.
Uswitch recommends using AI as a starting point, and to always verify financial advice using free and impartial Government sites like MoneyHelper, a regulated financial adviser, solicitor or Citizens Advice. You should also always check its sources and never rely on out-of-date information.
Ernest Doku, Uswitch technology expert, said: “We’ve watched Britain’s internet habits change for 25 years, and this is the fastest shift yet. We used to type a question into a search bar and weigh up the results – now millions of us ask a chatbot and take its word for it, on some of the most personal things in our lives.
“Used well, AI is a brilliant sounding board – always awake, never judgemental, and often the first step for people who would struggle to ask anyone at all. But its greatest strength – that it always has an answer – is also its biggest risk. It sounds just as confident when it’s wrong as when it’s right, and this research shows the cost when that trust is misplaced.
“So keep talking to the bot, but treat its answers as a starting point rather than the final word. If the stakes are big – your health, your money or a big life decision – get a human second opinion before you act.”
