Business

Michael Burry, the investor famed for predicting the 2007 subprime mortgage collapse and inspiring The Big Short, has wagered $1.1 billion against two of the world’s most prominent artificial intelligence stocks — Nvidia and Palantir Technologies.

Regulatory filings show that Burry’s hedge fund, Scion Asset Management, has bought put options — which profit when prices fall — on one million Nvidia shares worth around $187 million, and five million Palantir shares valued at $912 million as of September 30.

The move marks Burry’s latest contrarian stance against one of Wall Street’s most hyped trends. Writing on X (formerly Twitter) in his first post for over two years, he warned followers of an emerging AI bubble, stating: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”

His disclosure coincided with a broader market pullback, as fears of overheated valuations in the AI sector sent US indices lower on Tuesday. The Vix volatility index, Wall Street’s so-called “fear gauge,” rose toward a two-week high.

Nvidia, which recently became the first company to reach a $5 trillion market valuation, dropped 4 per cent to $198.69 in New York trading. Palantir, whose stock has surged more than 360 per cent over the past year, slid 8 per cent to $190.70.

Despite reporting record quarterly revenue on Monday, Palantir trades at nearly 250 times its 12-month forward earnings estimates — far higher than Nvidia’s 33 and Microsoft’s 29.9.

Alex Karp, Palantir’s chief executive, dismissed Burry’s bearish position in an interview with CNBC: “The two companies he’s shorting are the ones making all the money, which is super weird. The idea that chips and ontology is what you want to short is batshit crazy. He’s actually putting a short on AI.”

Meanwhile, Wall Street heavyweights Ted Pick, chief executive of Morgan Stanley, and David Solomon, head of Goldman Sachs, cautioned that a 10–15 per cent market correction may be due after this year’s AI-driven rally.

Pick told the Global Financial Leaders’ Investment Summit in Hong Kong: “We should welcome the possibility of drawdowns that are not driven by some macro cliff effect.”

Solomon added: “When you have these cycles, things can run for a period of time. But there are always shifts that change sentiment — and none of us are smart enough to see them until they occur.”

The surge in enthusiasm for generative AI has drawn comparisons to the dot-com bubble of the late 1990s, when speculative investment in internet companies drove valuations to unsustainable levels.

Yet, some analysts argue this cycle is different. The companies leading today’s AI revolution — such as Nvidia, Microsoft, and Alphabet — boast robust earnings and are largely self-funding their multibillion-dollar AI infrastructure, unlike the debt-fuelled exuberance of the dot-com era.

Whether Burry’s latest short bet will prove prescient remains to be seen — but history suggests that when The Big Short investor spots a bubble, markets tend to listen.

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Big Short investor Michael Burry places $1.1bn bet against leading AI stocks

Judgment in Getty Images v Stability AI seen as a setback for copyright owners as calls grow for new UK rules on AI training data

A London-based artificial intelligence company has won a closely watched High Court case that tested whether AI developers can lawfully train their models using vast libraries of copyrighted material.

Stability AI, whose board includes Avatar film-maker James Cameron, successfully defended a lawsuit brought by Getty Images, which alleged that the company had infringed copyright by scraping millions of its photographs to train the image-generation model Stable Diffusion.

Mrs Justice Joanna Smith found that Getty had failed to prove that the training took place in the UK and ruled that the resulting AI model did not constitute an “infringing copy” under existing law. Getty did, however, succeed on limited trademark claims after some AI-generated images were found to contain replicas of the Getty watermark.

The ruling is viewed as a blow to copyright owners’ ability to control how their work is used in AI training. Rebecca Newman, legal director at Addleshaw Goddard, said it highlights that “the UK’s secondary copyright regime is not strong enough to protect its creators.”

Evidence presented in court showed that Getty’s images had been used to train Stability’s model, which creates pictures from text prompts. Getty argued that Stability was “completely indifferent” to what it ingested, but the judge said the dispute underscored a wider societal question about “where to strike the balance between the creative industries and the AI sector.”

The decision comes amid intense debate over how the Labour government should legislate to manage the competing interests of artists and AI developers. Figures including Elton John, Kate Bush, Dua Lipa and Kazuo Ishiguro have urged ministers to protect creative rights, while technology firms argue for broad access to copyrighted data to build powerful generative models.

The government is consulting on proposals to create a “text and data mining” exception in UK law, which would allow copyright works to be used for AI training unless rights-holders explicitly opt out.

In a statement, Getty said it remained “deeply concerned” about the lack of transparency rules governing AI data use.

“We invested millions of pounds to reach this point with only one provider that we need to continue to pursue in another venue,” the company said. “We urge governments, including the UK, to establish stronger transparency requirements to prevent costly legal battles and to allow creators to protect their rights.”

Christian Dowell, general counsel for Stability AI, welcomed the decision: “Getty’s voluntary dismissal of most of its copyright claims left only a subset of issues before the court, and this final ruling resolves the copyright concerns that were at the core of the case.”

Gosia Evans, senior solicitor in Harper James’ intellectual property team, said the judgment still leaves the key question unanswered: “Should training AI models on copyrighted works be lawful in the UK? We need government to regulate AI use in a way that is practical and forward-thinking, without removing protections vital to the UK’s creative economy.”

The case is likely to influence future disputes over how AI systems source their data — and to intensify pressure on policymakers to clarify where copyright ends and machine learning begins.

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AI firm Stability AI wins High Court case against Getty Images over copyright claims

The number of Bitcoin millionaires has surged in the year since Donald Trump was confirmed as winner of the 2024 US presidential election, according to new on-chain data analysed by Finbold Research.

Between November 2024 and November 2025, the number of Bitcoin (BTC) wallet addresses holding at least $1 million in BTC rose by 44,783, marking a 33.8 per cent increase. On average, that equates to around 3,700 new millionaire-tier wallets every month.

As of 5 November 2025, blockchain analytics show 156,705 addresses hold between $1 million and $9.99 million in BTC, up from 120,851 a year earlier. Another 20,626 addresses now hold more than $10 million each, nearly doubling from 11,697 in 2024. Combined, roughly 177,300 Bitcoin wallet addresses now qualify as “millionaire-tier.”

The expansion of the “Bitcoin rich list” came during a year of sharp rallies followed by renewed volatility. On election day in 2024, Bitcoin traded near $69,000. Optimism around a friendlier US policy stance toward digital assets helped push prices to a record $126,000 in October 2025 before a correction saw BTC briefly fall below $100,000 this week.

The market upswing has coincided with what analysts describe as a shift in Washington’s tone on crypto. Since returning to the White House, President Trump has pledged to make the US a leader in Bitcoin and digital-asset innovation, promoting clearer regulation and domestic mining expansion as key policy goals.

Jordan Major, Lead Research Editor at Finbold, said the data suggests sustained long-term accumulation by larger investors: “The growth in millionaire-tier Bitcoin addresses during a year that included both strong gains and deep pullbacks shows that accumulation has continued among larger holders. Despite volatility, high-net-worth participants appear to be positioning for long-term exposure rather than short-term trading outcomes.”

Diana Paluteder, Finbold’s Head of Content, added that while some individuals control multiple wallet addresses, the underlying trend is significant “The rise points to greater concentration of Bitcoin among wealthier holders and institutional entities. It underscores Bitcoin’s continuing appeal as a strategic store of value within diversified portfolios.”

Bitcoin’s growing millionaire-wallet segment will remain a key indicator of investor confidence heading into 2026. Analysts expect regulatory clarity, expanding institutional adoption and macroeconomic positioning to shape the next phase of capital inflows — and to determine whether this year’s new class of crypto millionaires can hold onto their gains.

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44,000 new Bitcoin millionaires added since Trump’s election win, new research shows

Calculus Capital, the London-based growth investor specialising in technology, healthcare, and creative sectors, has completed the sale of its stake in Mo (Thanksbox Limited), the award-winning employee engagement and recognition platform, following its acquisition by US software group UKG.

Calculus first backed Mo in 2020 through its EIS and VCT funds, alongside existing investor Mercia Ventures. The company’s proprietary platform helps organisations strengthen workplace culture, reduce staff turnover, and boost engagement. Its flagship product, Moments, serves as an internal social media tool, encouraging employees to share achievements and celebrate milestones.

During Calculus’s investment period, Mo expanded its client base to include major corporate names such as Ocado, William Hill, Crowne Plaza, SGN, and Axol, while establishing itself as one of the UK’s most innovative HR technology businesses.

The exit follows Mo’s acquisition by UKG, one of the world’s largest human resources and workforce management technology providers. Headquartered in the United States, UKG supports more than 80,000 organisations across 150 countries, including 70 per cent of the Fortune 500. Its cloud-based Workforce Operating Platform integrates AI-driven insights into HR, payroll, and workforce planning systems.

The deal has delivered up to a 1.8x return for Calculus investors and generated £1.53 million in cash for the Calculus VCT. The firm said the proceeds will support its annual tax-free dividend yield and represent its second profitable exit in 2025, following the sale of Rotageek earlier this year.

Alexander Crawford, Co-head of Investments at Calculus, praised the outcome as “a testament to the dedication and commitment of Luke [Fisher] and the Mo team.” He added: “The UKG acquisition reinforces our strategy of backing ambitious SaaS businesses that are transforming the modern workplace.”

Luke Fisher, Founder and CEO of Mo, described the sale as “a huge moment” for the company. “This is the next step in Mo’s mission to help companies build thriving, people-first cultures,” he said. “We’re thankful to Calculus for their belief, guidance and investment, which enabled us to scale and demonstrate the value of engagement technology at enterprise level.”

For UKG, the acquisition expands its footprint in employee experience software and adds further depth to its AI-powered people-management solutions — underscoring the growing global appetite for workplace engagement technology.

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Calculus Capital exits Mo following UKG acquisition

What was once a rather niche segment of entertainment has, in the past years, grown into one of the most lucrative industries in the digital economy.

Recently, UK investors have shown a keen interest in this growing market, recognizing in it a mix of creativity and technology that brings stable long-term growth. As the industry continues to grow across platforms-from consoles and PCs to mobile and cloud gaming-one trend becomes increasingly evident: outsourcing plays a key role in driving the efficiency and innovation that make the gaming business so attractive.

The growing appeal of the video game sector is a function of both its entertainment value and resilience. In these fiscally uncertain times, gaming has continued to demonstrate robust demand and strong returns, hence continuing to be an appealing investment opportunity for seasoned and emerging UK investors alike.

A High-Value Market with Impressive Growth Forecasts

The global video game market is projected to reach hundreds of billions of dollars in revenue, growing consistently year over year at rates outpacing most other creative industries. According to the market research company Newzoo, the global games market was set to surpass a value of $184 billion in 2024 and would continue to grow during 2025 and beyond.

In particular, the UK acts as one of Europe’s most vibrant gaming markets. It is regularly in the top five on the world stage in both revenue and innovation in the video game market. Native developers and publishers, supported by a wide network of investors, incubators, and tech hubs, add to the strong ecosystem that fuels new opportunities.

This variety also makes it all the more interesting for investors, from mobile in-app purchases to subscription-based gaming, eSports, and VR experiences. Such diversity acts as a hedge against volatility, helping maintain stability even with the constantly changing technological and consumer preference landscape.

Stable Global Demand: Why Gaming Remains Recession-Resistant

Unlike most sectors of entertainment, gaming is recession-resistant: when the economy is bad, consumers cut back on things like travel or luxury goods but still continue to invest in inexpensive home entertainment, and video games fit that bill perfectly.

This stability has been further cemented through global connectivity and the growth of digital platforms, where games can reach players in every part of the world. New title releases, updates of games, and online interactive communities maintain high levels of engagement, which means demand is relatively constant throughout the year.

Mobile and cloud-based services have opened up access and provided new channels of revenue for game developers. This is what makes gaming one of the most reliable markets in which to invest for the long term, especially for UK investors seeking long-term sustainable returns.

The Role of Outsourcing: Strategic Advantage

One of the most compelling drivers of investor confidence in the industry has to be strategic outsourcing. Competition is fierce, and with that in mind, today’s game studios increasingly find themselves hiring specialized partners to accelerate development, maintain high-quality work, and optimize their costs.

Companies like gamepackstudio.com Give examples of how outsourcing has grown into a strong driving force for innovation. Such studios provide access to skilled artists, animators, designers, and developers who can handle particular elements of production, from concept art or 3D modeling to game mechanics and post-launch support.

1. Access to Specialized Talent

This is because game creation has become a truly global activity, with studios often needing very niche skills that aren’t always available on their doorstep. Outsourcing gives developers and publishers in the UK access to a worldwide pool of talent specializing in everything from different aspects of game design to various aspects of development. The approach not only raises quality but also fosters creative diversity through aggregating different artistic and technical perspectives.

2. Scalability and Flexibility

The industry works in cycles: rapid development phases, testing, optimization, and updating. Outsourcing gives scalability: to expand the teams quickly in peaks of production and reduce costs when the project is finished. That flexibility will keep companies agile, efficiently manage budgets, and allow them to respond to changes in demands for projects without sacrificing quality.

3. Faster Time-to-Market

Speed means everything in the gaming industry. The competition is stiff, and there is always a demand for fresh content; thus, studios can have an edge over others if they are able to provide quality games faster. Outsourcing would allow parallel workflows to be possible wherein different aspects of game development can take place simultaneously, reducing production timelines, which in turn allows investors to see returns sooner.

Outsourcing: A Growth Driver for UK Investors

For investors in the UK, the benefits of outsourcing go beyond simple cost savings. It provides a scalable infrastructure necessary for an increasing production capacity and the possibility to explore additional markets without the heavy upfront investment that would otherwise be needed by a large in-house team. Outsourcing will also enable studios to avoid risks related to hiring, training, and maintaining people with special skills. Investors can be sure, in cooperation with experienced outsourcing studios, that projects keep the same level of quality without delays-two major factors for profitability. Outsourcing is contributing to innovation because creative teams can experiment with new technologies like AR, VR, and AI. Lighter operational burdens let studios focus on storytelling, gameplay experience, and art direction-the things that make games memorable and financially successful.

The Future of Investing in Gaming

While continuing to merge with other forms of media, such as film, music, and social platforms, the influence of gaming will continue to deepen in the global entertainment landscape. This market is increasingly being recognized by investors from the UK and elsewhere not just as a financial opportunity but as a driver of cultural and technological progress. A high market value, combined with steady global demand and strategic outsourcing, forms a solid base for long-term growth. With forward-looking studios and partners such as gamepackstudio.com, this means UK investors can confidently participate in this vibrant ecosystem, supporting projects that reach audiences around the world while generating sustainable returns.

In other words, the upsurge of outsourcing is not only changing the way games are made but also shaping up the future of the global economy in gaming and sealing the industry’s reputation as one of the most alluring investment sectors this decade.

Read more:
UK Investors See Great Potential in the Video Game Market and Actively Use Outsourcing Services

Britain has taken the global food crown in Deliveroo’s much-anticipated 2025 “Deliveroo 100 Report”, which charts the most popular and fastest-rising delivery trends across nine countries.

London’s Papo’s Bagels topped the global list with its “Classic” smoked salmon and cream cheese bagel — the world’s number one order on Deliveroo this year — leading a record 16 UK dishes that made the global rankings.

Deliveroo’s global top ten was dominated by comforting, portable classics — bagels, burgers and sandwiches. The UK was one of just three countries to land two dishes in the top ten, with Papo’s Bagels’ “The Classic” at number one and 7Bone’s “Dirty Meal Deal” from Reading at number eight.

The rest of the top ten spanned continents, with Italy’s La Piadineria in Bologna taking second place, Dubai’s Rascals Deli in third, and Paris’s Pierre Sang claiming fourth with its Korean-inspired Bibimbap Boeuf Bulgogi.

Deliveroo said the global trends pointed to “culinary exploration without borders”, with traditional formats reinvented through innovation — from smashburgers to fusion flatbreads.

“Marking our ninth year, the Deliveroo 100 is more than a list — it’s a snapshot of global cravings and consumer habits,” said Jeff Wemyss, Deliveroo’s Vice President of Regional Growth. “This year’s list shows how communities connect through food, and how independents continue to shine alongside household names.”

The bagel has officially been crowned Britain’s comfort food of the year, with Deliveroo highlighting a “nationwide obsession” that has seen bagel shops and pop-ups thrive across the UK. Papo’s Bagels — an independent, family-run business born in lockdown — beat global restaurant giants to the top spot.

Its success, Deliveroo noted, “proves that local independents can capture the nation’s appetite and turn a humble classic into a cultural phenomenon.”

Deliveroo’s UK list reflects a nation of adventurous yet comfort-seeking diners. Alongside Papo’s bagel and 7Bone’s burger, the top orders included Crunch’s Ultimate Combo (London), Jason’s Sourdough Bread from Morrisons in Manchester, and Wingstop’s Garlic Parmesan Tenders in Birmingham. Health-focused and viral favourites also made the list, such as JENKI’s Matcha Iced Latte and Planet Organic’s Seamoss Gel.

Matcha mania continued to dominate 2025, fuelled by TikTok trends. JENKI’s Matcha Iced Latte reached number seven on the UK list, while Sticks N Sushi’s Matcha Chocolate Cake in Cambridge made number 29.

Sourdough also proved its staying power, with Manchester crowned the UK’s “sourdough capital” thanks to Jason’s loaves. Meanwhile, the rise of wellness products saw Planet Organic’s Myla’s Moss Seamoss Gel Gold break into the top 30 — a nod to consumers’ growing appetite for health-conscious choices.

At the other end of the spectrum, Deliveroo’s data revealed a surge in non-food items, including Wilko fans, Ann Summers’ Power Bullet Set, and skincare essentials like face masks — a reflection of how the app is becoming a one-stop shop for everyday needs.

Deliveroo also unveiled its “Biggest Climbers” of 2025, highlighting how customers are increasingly turning to the platform for lifestyle and retail purchases. Fans, jewellery, candles, cat litter, perfume and paint rollers were among the fastest-growing categories, driven by heatwaves, holidays and home improvement trends.

“We’re seeing an evolution in the way people shop,” said Wemyss. “Non-food orders are growing rapidly across the UK. Whether it’s a hearty smash burger or a perfectly ripe punnet of blueberries, Deliveroo is there for every need.”

This year’s Deliveroo 100 celebrates how technology, social media and local creativity are blending to reshape global tastes. As Papo’s Bagels and other independents rise to global fame, the message is clear: the UK’s appetite for flavour, fun and innovation shows no signs of slowing down.

From sourdough to seamoss, the nation’s taste buds are living their best delivery life.

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Bagels, burgers and seamoss top Deliveroo’s 2025 cravings list

OpenAI has signed a landmark $38 billion agreement with Amazon Web Services (AWS) to secure the immense computing power required to train and deploy its next generation of artificial intelligence systems — marking one of the biggest technology infrastructure deals ever struck.

The partnership, announced this week, will give the maker of ChatGPT access to vast fleets of graphics processors — including hundreds of thousands of Nvidia chips — hosted within Amazon’s cloud network. OpenAI will begin using AWS infrastructure immediately, with full deployment expected by the end of 2026 and room to expand further beyond 2027.

The move represents a significant shift for OpenAI, which until now has relied heavily on Microsoft’s Azure platform to power its models. The deal also underscores the intensifying race among cloud giants to dominate the lucrative AI infrastructure market. Following the announcement, Amazon shares surged to a record high, briefly valuing the company at more than $2.74 trillion, as investors hailed the agreement as a strong endorsement of AWS’s capabilities.

Sam Altman, OpenAI’s chief executive, said the partnership was critical to scaling what he called “frontier AI”. “Scaling frontier AI requires massive, reliable compute,” he said. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

For Amazon, the deal serves as a powerful vote of confidence in AWS at a time when some analysts had questioned whether the cloud division was falling behind rivals Microsoft and Google in the AI race. The agreement ensures AWS remains central to the next phase of AI development — an arena now defined by unprecedented hardware and capital demands.

Industry analysts said the scale of the contract highlights how the economics of artificial intelligence have changed. Paolo Pescatore, analyst at PP Foresight, described it as “a hugely significant deal and a clear endorsement of AWS’s compute capabilities”. The deal also reflects how AI development has become a game of access — not just to algorithms and talent, but to computing power on a colossal scale.

OpenAI has been on a global dash to secure that capacity. In addition to the Amazon deal, it has signed agreements with Nvidia, AMD and Oracle to access more powerful processors and cloud data centres. Altman has previously said the company plans to invest around $1.4 trillion in computing resources over the coming years, targeting 30 gigawatts of infrastructure — enough to power roughly 25 million American homes.

The agreement also follows OpenAI’s internal restructuring with its largest backer, Microsoft, which valued the company at $500 billion and paved the way for it to evolve from a non-profit research outfit into a profit-driven business. The reorganisation transferred some control to a new non-profit foundation that holds equity in OpenAI’s commercial arm while removing Microsoft’s right of first refusal to supply its compute services — effectively clearing the path for the new partnership with Amazon.

However, the deal has reignited debate about whether the AI sector is heading into a speculative bubble. Nvidia, whose chips underpin most AI systems, last week became the world’s first $5 trillion company, its market value now roughly half the size of Europe’s entire benchmark equities index. Analysts warn that the rapid rise in valuations, coupled with vast capital outlays by AI developers, may prove difficult to sustain if the promised productivity gains do not materialise.

Despite those concerns, the OpenAI–Amazon deal sends a clear message: AI’s future will be shaped by those with the deepest computing resources. As cloud titans jostle for position, the partnership not only secures OpenAI’s access to power on an unprecedented scale but also cements AWS’s place at the heart of the global AI infrastructure boom.

For now, Altman appears undeterred by warnings of overheating. His stated ambition is to add one gigawatt of compute capacity every week — each unit carrying an estimated capital cost of more than $40 billion. If that pace continues, OpenAI’s collaboration with Amazon may only be the beginning of an even larger technological arms race redefining how artificial intelligence is built, trained and delivered worldwide.

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OpenAI strikes $38 billion deal with Amazon to supercharge AI computing power

Chancellor Rachel Reeves used a rare Downing Street address to lay the groundwork for her upcoming Budget, signalling that tough tax decisions lie ahead — but sought to pre-empt backlash by insisting the pressure on public finances “wasn’t our fault”.

In the speech, she said the UK economy was struggling not because of Labour’s policies but because of “longer-term factors” such as Brexit, decades of Tory austerity and rising global borrowing costs. “We must deal with the world as it is, not how we wish it could be,” she said.

Ms Reeves presented her forthcoming fiscal package as a choice between “investment and hope, or cuts and division”. She said she would do “what is right rather than what is popular”, placing emphasis on protecting the NHS, reducing national debt and improving the cost of living. But she also acknowledged that the measures required could mean pain for taxpayers — in particular the “wealthy” and property-owners — and carry consequences “for years to come”.

With the public finances projected to be weaker than expected, analysts estimate she may need to raise around £20 billion to £30 billion in additional revenue, despite last year’s historic tax rises.

Ms Reeves stressed that any future tax decisions were not being taken lightly: “Any Chancellor of any party would be standing here facing the choices I face,” she said, placing the blame squarely on previous governments and global shocks rather than her own policies.

She specifically cited a barrage of international headwinds — from US tariffs and conflicts in Europe to supply-chain disruption and jump-in borrowing costs — as having undermined Britain’s growth prospects. “The world has changed,” she said, “and we’re not immune to that change.”

Although she reaffirmed the manifesto promises not to raise VAT or tax working-people’s payslips, she stopped short of committing not to raise income tax, or altering thresholds — leaving open the possibility of a “wealth tax” or a hike in capital taxes.

Opposition parties seized on the remarks, warning that Ms Reeves was setting the stage for a significant tax raid disguised as a responsible Budget. Conservatives argued the Chancellor was laying the blame for her own ask on others.

With the next Budget scheduled for 26 November 2025, markets will be watching closely. Ms Reeves warned that if lenders and investors doubted her commitment to fiscal rules, the UK’s cost of borrowing could rise further — potentially forcing even deeper cuts or higher taxes.

In sum, the Chancellor has raised expectations of tough decisions while making it clear she will not be the one held solely responsible — outsourcing the blame to Brexit, austerity and global chaos. Whether the public accepts that framing — and whether her fiscal package delivers growth alongside the pain — remains the key question.

Read more:
Reeves shifts blame for looming tax rise to Brexit and austerity ahead of budgeting storm

Artificial intelligence is fast becoming Britain’s most popular financial adviser, with more than half of adults now using platforms such as ChatGPT to help them make decisions about money, according to new research commissioned by Lloyds Banking Group.

The study found that 56 per cent of UK adults — equivalent to 28.8 million people — have turned to AI tools for guidance on budgeting, savings, pensions and even investments. Financial advice has overtaken all other uses of AI, cited more often than help with writing emails or work documents (29 per cent), recipes (20 per cent), medical queries (17 per cent) or career advice (14 per cent).

Researchers said the findings show how quickly AI has entered mainstream decision-making since becoming widely available less than three years ago, but warned that the trend also exposes consumers to new risks.

Jas Singh, chief executive for consumer relationships at Lloyds, said: “AI is empowering millions to feel more confident about their financial decisions — but it’s vital they receive information they can trust.”

The study of 5,000 adults found that one in three people uses an AI tool at least once a week for financial information or advice. Many users seek practical help — such as drawing up budgets — but others ask for recommendations on pensions, investments and tax, areas that would normally require regulated professional advice.

Unlike banks or investment firms, which face strict rules on what they can tell customers, AI platforms are entirely unregulated. This raises the risk of people acting on incorrect or misleading information, with no legal protection if things go wrong.

Despite those dangers, awareness among users remains mixed. Around 80 per cent of respondents said they were worried about receiving inaccurate advice, and 83 per cent expressed concern about data privacy — yet usage continues to grow rapidly.

Experts say the boom reflects a deeper problem in Britain’s financial system: the “advice gap”, where millions of people cannot afford the roughly £1,000 it costs for a traditional financial adviser to conduct a full review of their affairs.

ChatGPT, the AI chatbot developed by OpenAI, was the most widely used tool, cited by six in ten respondents, followed by Google’s Gemini, Microsoft’s Copilot, and Meta’s AI assistants built into WhatsApp and Facebook.

Users reported saving an average of £399 a year through AI-assisted money management, suggesting the technology is helping people make more informed day-to-day decisions — at least in the short term.

The Financial Conduct Authority (FCA) is preparing to introduce new “targeted support” rules by late 2026, allowing regulated firms to provide more tailored guidance without a full financial fact find. However, the Lloyds study suggests consumers are already far ahead of the regulatory curve.

The FCA has acknowledged AI’s potential to simplify complex information and improve accessibility, but it continues to stress that human judgment remains essential. The regulator is understood to be considering website updates to help consumers understand both the benefits and the limits of generative AI.

Consumers who act on AI-generated recommendations are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme if they suffer financial losses.

Financial experts warn that while AI can make financial knowledge more accessible, it also risks normalising unverified advice.

Ignorance, fear of risk and frustration with the complexity of financial products have long pushed people toward poor decision-making, the report notes. AI, by offering quick and personalised answers, could help bridge that gap — or, without oversight, widen it.

As Singh concluded: “Technology can help people take control of their money, but it cannot replace trust. The future of financial advice must combine innovation with responsibility — and ensure that confidence doesn’t come at the cost of protection.”

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Half of UK adults now use AI for financial advice, study finds

The British Chambers of Commerce (BCC) has warned that Britain’s smallest exporters are being “left behind” as larger firms benefit from new trade agreements, calling for urgent government action to help smaller businesses expand overseas.

According to the BCC’s latest Quarterly Trade Confidence Report, only 16 per cent of micro exporters — companies with fewer than ten employees — reported growth in international sales during the third quarter of this year. In contrast, 42 per cent of larger exporters saw exports rise over the same period, highlighting what the BCC described as a “deeply concerning” divide.

The findings, based on a survey of 4,600 UK businesses conducted between August 18 and September 15, reveal that smaller firms are struggling to capitalise on the government’s recent trade deals, including those with India, the United States and the European Union.

William Bain, head of trade policy at the BCC, said the widening gap underlines the need for targeted intervention. “The growing disparity between the experience of the UK’s largest and smallest exporters is deeply concerning,” he said. “It underlines our call for urgent government action, in partnership with business, to help smaller firms reap the benefits of trade.”

While almost half of large exporters (47 per cent) said their export volumes had remained stable, only 27 per cent of micro exporters saw growth, and a further 27 per cent reported declines. In the previous quarter, 29 per cent of large exporters had reported growth in export orders, compared with just 20 per cent seeing a fall.

Overall, 24 per cent of all exporters reported increased overseas sales in the third quarter, while 22 per cent said they had secured more new export orders.

Bain said that although businesses welcomed the government’s refreshed trade strategy, launched in June, the benefits were still not filtering down to the smallest companies. “Larger exporters are starting to feel the effects of improved market access,” he said, “but small and micro businesses need greater practical support — from help navigating paperwork and logistics to tailored advice on entering new markets.”

The BCC’s report comes as the government prepares for International Trade Week and is run by the Department for Business and Trade. The fifth annual event will feature a series of in-person and online sessions designed to encourage more UK businesses to export and to help firms understand the opportunities created by recent trade agreements.

Sir Chris Bryant, the minister for exports, said the government was “breaking down barriers to trade” and negotiating additional deals to open up new markets. “We are determined to make it easier for British businesses of all sizes to sell their goods and services abroad,” he said.

However, business leaders argue that the government must go further if the UK is to strengthen its export base. The BCC said that without dedicated support for small and micro firms, the country risks a two-tier trade recovery, in which only the largest exporters benefit from new market access.

Trade experts warn that smaller companies face unique barriers, including higher compliance costs, limited access to export finance, and a lack of localised expertise in customs and regulation. The BCC has urged the government to extend export credit guarantees, simplify digital trade paperwork, and improve access to on-the-ground support through UK embassies and trade offices.

For Bain, the message is clear: “The UK cannot afford to have its smallest businesses locked out of global markets. If Britain is serious about becoming a trading nation again, the government must give SMEs the tools and confidence they need to grow abroad.”

As International Trade Week begins, the spotlight will be on whether the government’s export strategy can finally translate into meaningful opportunities for the thousands of smaller firms that form the backbone of the UK economy.

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Small exporters ‘left behind’ as larger firms surge ahead, warns BCC