Using AI for investment research

First published: 18/12/2025 Last updated: 18/12/2025

If you’re thinking of using an AI tool to research an investment, remember that while AI can be handy to break down complicated topics, it’s not perfect. Let’s look at the pros and cons of using AI to help your investment research and decision making.

Not all AI tools are regulated

‘General-purpose’ AI tools like ChatGPT or Gemini are designed to respond to a variety of prompts and topics. This means that they aren’t set up to help with researching opportunities to invest or other financial decisions you make. These general-purpose tools are not regulated by us in the way that regulated financial advice from an authorised professional adviser is.

The positives and negatives of using AI for investment research

The positives:

AI can summarise complex topics and convert information into language that’s easier to understand.
It could make your research more time-efficient. AI can help you cast a wide net quickly when researching. You can use it to scan websites to get the information you’re looking for from a variety of different sources.
You could ask AI to summarise complex investment reports into a few key points. This can help make the information easier to digest, especially if you're just starting out or want a quick overview to better understand an investment opportunity upfront.

The negatives:

Sometimes AI provides information that’s just incorrect. These are known as ’hallucinations’. It happens when AI misinterprets information or fills in the blanks with things that sound right but aren’t true. The tricky part is that AI sounds confident, which makes it seem genuine. This can be a real problem when you’re researching an investment. Always double check AI answers with trusted sources, especially for investment research.

Pro tip: You can ask AI to provide its sources, so you can double check the information is right from a reliable non-AI source.

AI doesn’t always give up to date content. A lot of what it’s trained on can be outdated, so it’s important to do your own research and double-check any facts or data it provides to make sure they’re accurate.

Not sure where to start with your own research? Try our 5 questions to ask before you invest.

We don’t regulate advice provided by general-purpose AI tools, this means that you won’t be eligible for protections from the FSCS or FOS.

When does FSCS and FOS protection apply?

You may benefit from protection through the FSCS or FOS if you receive regulated financial advice. These protections are here to help if you receive bad advice from an authorised financial advisor that causes you harm (though you won’t qualify just because your investments perform badly). The FSCS has an explainer video and information on whether you’d be protected.

Information from general-purpose AI tools like ChatGPT or Copilot isn’t regulated by us, but if a firm that we regulate launched its own AI tool or chatbot to help provide regulated financial advice, you could be eligible for FOS (link how to complain page) and FSCS protection.

Investment platforms and other firms that we authorise often provide free information around investing. Our rules say that they must make sure that this is clear, fair and not misleading. You can also find other sources of information on investing from MoneyHelper, like their investing guide, and our other InvestSmart pages.

Pro tip: Use AI to guide you where to dig deeper, not as your final answer. You could ask it to highlight the ’what’ so you can focus your attention and research on the ‘why’ and ‘how’.

AI can help you understand the big picture without getting lost in financial jargon but always verify the facts using the original source.

MythBusters

Can AI help me learn about investing?

Yes. AI can help you understand technical language, break down information and highlight some of the benefits of investing. This makes it a great learning tool for investment research. But it shouldn’t be your only source of information.

Is everything AI says accurate and up to date? 

Not always. AI can sometimes provide outdated or inaccurate information, especially if it doesn’t have access to real-time market data. In some cases, AI may even ’hallucinate’, making up facts or misinterpreting data. Always double check any financial information using trusted sources.

Is AI better than a human? 

In some ways, they are not comparable. Think of AI as a workout supplement, not something that does all the work for you. It can support your efforts, but it’s no substitute for putting in the effort. The same goes for research, AI can help you learn more, but it shouldn’t replace digging into the details yourself.

Can I use AI to predict market crashes?

No, AI is analytical not psychic. AI can help you understand historical patterns and warning signs (like volatility), but it cannot predict the future or sudden, unexpected events.

Can AI help me identify risks in an investment? 

Yes, AI can analyse data to help you identify risks based on the past performance of an investment, which may help you make an informed decision. But it’s important to remember that AI can provide incorrect information and it cannot predict how this investment may perform in the future.

Can I use AI to get rich quickly? 

No. There’s no shortcut to guaranteed returns. If AI suggests an investment strategy is a 'sure thing', or a tool promises guaranteed fast returns, that’s a red flag. If it sounds too good to be true, then it probably is.