Almost three in 10 (29 per cent) people aged 18-34 have used artificial intelligence (AI) to get information about pensions or retirement savings, according to Standard Life research.

In comparison, 16 per cent of those aged 35-54 and 6 per cent of people aged 55 and over used AI for this purpose.

Among younger users, 41 per cent had used AI to understand how pensions work, 33 per cent to navigate pension tax rules and 32 per cent to explore how they could save more.

Nearly two thirds (62 per cent) said AI had influenced decisions about their pension or retirement savings to some or a great extent.

The findings are supported by separate FCA research, which showed that four in five less experienced investors aged 18-40 had used AI for help with investing, with around two-thirds doing so occasionally or regularly.

More than half (56 per cent) said they trusted AI tools, ahead of television and radio at 47 per cent, the press at 46 per cent, and social media influencers at 29 per cent.

Two-thirds are also expected to rely on AI more over the next year.

However, the FCA warned that many investors appeared to misunderstand the protections applying when AI tools are used for investment decisions.

Almost half (44 per cent) incorrectly believed AI-generated financial information was regulated, while 38 per cent thought it was acceptable to make an investment decision solely on the basis of AI output.

A further 32 per cent wrongly believed they would be eligible for compensation from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service if AI-generated advice led to losses.

At the same time, 73 per cent recognised that AI could provide inaccurate information, and 86 per cent understood the importance of checking the sources referenced by AI tools.

The FCA stressed that general-purpose AI chatbots are not regulated, although tools specifically designed to provide financial advice would be likely to fall within its regulatory perimeter.

FCA director of consumer investments, Lucy Castledine, commented: “AI can help you research companies, understand jargon or explore options before you make a decision.

“But you need to understand how you’re protected and continue to use your own judgement. Our InvestSmart website can also help you make more informed decisions.”

Echoing these concerns, Broadstone head of personal financial planning, Rob Hillock, warned that confidence in AI was running ahead of understanding.

“AI can make investing more accessible by explaining complex concepts and supporting research, but it cannot replace regulated financial advice or personal judgement,” he continued.

“Crucially, it cannot necessarily replicate the personalised assessment needed to determine whether an investment is suitable for an individual’s objectives, time horizon, appetite for risk and capacity for loss.”

Standard Life head of master trust and IGC governance, Donna Walsh, noted that AI was also becoming increasingly important in the way younger people approach pensions.

“That underlines why accuracy, appropriate safeguards and knowing when to turn to trusted or regulated sources really matter, particularly at a time when scams and fraudulent activity are becoming increasingly sophisticated, and technology can make it harder to distinguish credible information from misleading content," she said.

She added that AI could play an important role in encouraging earlier engagement with retirement by breaking down jargon and prompting questions.

However, Walsh stressed it should remain “a starting point rather than the final word”, with consumers combining new technology with reliable information, appropriate guidance, targeted support and, where possible, regulated financial advice.

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