Defaqto-backed research finds widespread AI use for decisions, low consumer ability to verify guidance, and growing concern about data quality and human oversight in financial and insurance choices.
Firms must focus on data provenance and give customers human intervention, transparency, and independent oversight to meet consumer conditions for AI acceptance.
Broker-assisted interactions currently deliver better outcomes on measures such as claims speed, and can offer named accountability that AI-only routes lack.
# What the research shows Defaqto presented new research at its 2026 Data of Record conference showing rapid consumer adoption of AI in everyday choices and financial decisions. Use is high: eight in 10 UK consumers report using an AI assistant at least three times a week, and six in 10 use AI to help them make decisions. More people now turn to AI-powered tools than to a provider or financial adviser when selecting financial products.
Adoption has outpaced trust and verification. Sixty-two percent of respondents say they cannot judge whether AI guidance is accurate. About one in five actively distrust AI tools when choosing a financial product, and nearly one in five have already acted — or nearly acted — on AI guidance that later turned out to be wrong.
# Why data quality matters
# Human connection, transparency, and regulation
Those three conditions map directly to what brokers already provide: a named professional accountable for advice, access to a broad market view, and a human to contact when something goes wrong. The Chartered Insurance Institute's July 2024 Public Trust Index reported that broker-assisted consumers get better outcomes than those who use price comparison sites or buy directly, including on claims speed.
# Practical implications for firms and consumers For firms: validate and document data sources, structure data to reflect the full market, and build processes that allow human review and accountability where decisions matter. For insurers and brokers: emphasise the human role and the availability of a named adviser when marketing AI-enabled tools.
For consumers: be cautious when following AI guidance for financial products. If you cannot judge whether a recommendation is accurate, ask for an independent comparison, insist on human review, or consult a regulated adviser before acting on significant decisions.
# What to expect next As AI becomes a common first stop for insurance and financial decisions, outcome gaps between AI-only routes and broker-assisted routes are likely to widen before firms close them. The research suggests the market will move toward hybrid models that combine AI efficiency with human oversight, clearer transparency about data and models, and stronger external regulation or independent verification to restore consumer confidence.
More than three million Australians use AI for financial advice. Here are the 10 reasons AI gave me not to use it.
Major AI models failed to correctly answer financial questions in 57% of cases, new research shows, raising serious questions about consumer reliance on AI tools
That's a problem brokers should be shouting about
An unregistered AI tool has no fiduciary duty and no liability for bad advice. Use these 5 questions to verify SEBI registration, real costs, risk profiling, and data safety.
The survey found that nine in ten who acted on AI advice liked the result
Experian says its Verify network has a path to cover more than 80 million payroll records across the U.S.
Loading more related stories...
Open the app view to save this story, compare related coverage, and continue from the same source.