The use by the public of tools powered by artificial intelligence (AI) is becoming more and more popular, including in the context of financial investing. Investors have access to public online AI tools and applications (apps) that can suggest investments based on publicly available knowledge. However, these technologies - while innovative and potentially useful - also present significant risks, especially when used as the sole source for making financial decisions.

The factsheet released today by ESMA and national Authorities aims to raise awareness of the main issues to keep in mind when using publicly available AI tools for investment guidance. It highlights the potential dangers of misleading advice, promises of easy money, lack of regulatory oversight, and privacy risks.

The warning to investors is clear: do not rely blindly on AI, but consider it as one of many sources of information, always favoring an informed approach and-when necessary-turning to licensed professionals.

The factsheet is part of a broader awareness campaign promoted by ESMA through social channels to help Europeans make more informed and safe choices in the new digital environment.