Data security, oversight fears fuel AI finance distrust

Binaya Dahal

Editorial Intern, Financial Newswire

12 March 2026

Australians are rapidly adopting artificial intelligence (AI) in their daily lives but deep concerns about data security, privacy, and absence of human oversight have so far deterred many from trusting the technology with critical financial decisions.

New research from Colonial First State (CFS) shows that around two-thirds (64%) of Australians expect AI to become common in financial services within five years, but they have clear expectations about how it should be used.

Almost 29% who participated in the research said stronger safeguards and clearer regulation would increase their willingness to pay for AI-driven tools. A further 25% want improved data security, while another 25% say they would need the option to opt out of automated services.

Head of Technical Services at CFS, Craig Day, said people want the confidence that comes from trusted professional advice when it comes to important financial decisions.

“While there’s a clear recognition of the value AI can bring in saving time and improving access to information, many people draw a clear line when it comes to their finances,” Day said.

“AI can support better outcomes, but it works best when it complements the expertise and oversight of a qualified financial adviser.”

When asked about using AI for everyday activities such as budgeting, product comparison, or tracking spending, 42% said they felt comfortable, however, only 38% share such sentiment for management of everyday accounts and payments.

Support dropped further for AI involvement in investment management with 83% saying access to human interaction was important when deciding on superannuation and long-term investments.

“That confidence comes from working with someone they have developed a relationship with and who understands their personal circumstances, applies judgement, and is accountable for the advice they give,” Day said.

Furthermore, younger individuals, high-net-worth investors, and frequent technology users report relatively higher trust in technology, but that figure reduce sharply when financial outcomes depend on automated decisions.

Confidence was weakest among older Australians and women, who consistently expressed stronger preferences for human oversight when managing their personal finances.

“People want AI introduced carefully, with safeguards and clear human responsibility for decisions that shape their financial outcomes,” Day said.

“Australians still want reassurance that a qualified professional is applying judgement and standing behind those decisions.”