“Make £X a month with AI”: red flags in income claims, and the UK rules behind them

Why AI income claims are everywhere

Scroll any social feed and you’ll see them: “I made £8,000 last month with ChatGPT”, “faceless YouTube channel, no experience needed”, “my AI side hustle pays my mortgage”. They usually end with a course, a coaching programme, a paid community or a “free” webinar.

Some people do earn money with AI tools. But a screenshot of one good month tells you nothing about what a typical buyer earns, and UK advertising rules say that is exactly the information that matters. This guide sets out the warning signs and the rules behind them, so you can judge an offer for yourself.

Ten red flags

1. A big number with no context. “£10k a month” without saying whether that’s revenue or profit, how long it took, what it cost, or whether it’s typical.
2. The seller’s results presented as yours. The person selling the course is often earning mainly from selling the course.
3. “Results not typical” in small print. The ASA has said disclaimers don’t fix a misleading main claim.
4. Hand-picked testimonials. A few success stories, with no idea how many people bought and earned nothing.
5. “Passive”, “no skills”, “10 minutes a day”. Real businesses take time, and most AI side hustles involve ongoing work, marketing and customer service.
6. Lifestyle images doing the selling. Cars, villas and piles of cash suggest a transformation the offer can’t promise.
7. Countdown timers and “last 3 places”. Pressure tactics, especially if the deadline resets.
8. “Free” that isn’t. A free webinar that is really a long sales pitch, or a free trial that rolls into a big payment.
9. Recruit-to-earn. If the main way to make money is to sign up other people, be very careful: that can be a sign of a pyramid scheme.
10. Pressure to pay in unusual ways, such as crypto, bank transfer to a personal account, or a loan to “invest in yourself”.

What the advertising rules say (ASA and CAP)

Ads in the UK, including social posts and influencer content promoting a product, are covered by the CAP Code, which the ASA enforces. In April 2026 the Committee of Advertising Practice (CAP) published guidance aimed at ads for money-making courses, telling advertisers to “stick to the facts”. It covers:

• inflated or unrepresentative income claims,
• unrealistic “transformation” stories and lifestyle imagery,
• testimonials that suggest results most buyers won’t get,
• disclaimers that contradict the headline claim, which don’t make the ad acceptable,
• calling something “free” when it isn’t, and
• misleading time-limited offers.

The CAP Code also has a specific rule (20.2) on earnings claims in ads for business opportunities: they must be realistic and based on what a typical person can earn, and the advertiser must hold evidence. CAP’s advice note on this explains that quoting the best results, or the results of the people running the scheme, isn’t enough.

If you see an ad you think breaks these rules, you can complain to the ASA for free.

What consumer law says (CMA)

Misleading sales practices are also covered by consumer protection law. Since 6 April 2025, under the Digital Markets, Competition and Consumers Act 2024, the CMA can decide for itself whether consumer law has been broken and fine businesses up to 10% of their global turnover, without first going to court. The same regime bans fake reviews, and bans hiding or misrepresenting negative reviews. The CMA has published guidance for businesses on unfair commercial practices, including fake reviews and drip pricing.

For a buyer, the practical point is simple: a five-star wall of reviews isn’t proof of anything, and pressure selling or hidden costs are warning signs, not just bad manners.

When it’s really an investment scam (FCA)

Some “AI income” offers are not courses at all, but investment schemes: an “AI trading bot”, “AI crypto arbitrage” or a fund promising fixed returns. These can be outright scams. The FCA’s warning signs include:

• being contacted out of the blue,
• pressure to act quickly,
• returns that sound too good to be true,
• being told the offer is exclusive or secret,
• flattery and emotional pressure, and
• claims of authority or celebrity endorsement (deepfaked videos of well-known people are common).

Before handing over money for anything that looks like an investment, check the firm on the FCA Firm Checker and the FCA Warning List, and only reply using the contact details on the Firm Checker, not those the firm gave you. If you deal with an unauthorised firm, the FCA says you won’t be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme. The FCA also warns about “recovery room” scams, where people who have already lost money are contacted by someone offering to get it back for a fee.

Questions to ask before you buy

• What did the typical buyer earn, after costs, in their first six months? Is there evidence?
• How does the seller make most of their money: from the method, or from selling the course?
• What exactly do I get, and is the same information free elsewhere?
• What’s the refund policy, in writing, and who is the company behind it (name, address, Companies House number)?
• Are there ongoing costs: tools, ads, upsells, “inner circle” upgrades?
• Would I still buy this if the income claim weren’t there?

For a grounded starting point, our AI side hustle ideas for the UK guide lists realistic options with their costs and risks, and our guide to AI ebook publishing looks at one of the most heavily marketed ideas.

If you’ve been caught out

• Contact your bank straight away if you’ve paid. Ask about chargeback for card payments or a fraud claim for bank transfers.
• Report fraud to Report Fraud, the national fraud and cybercrime reporting service, which replaced Action Fraud, or call 0300 123 2040. In Scotland, report to Police Scotland on 101.
• Report a suspected investment scam to the FCA on 0800 111 6768 or through its website.
• Report a misleading ad to the ASA, and get consumer advice from Citizens Advice.

Sources

All checked 24 October 2026.

• CAP News, Money making courses: stick to the facts (April 2026): asa.org.uk
• CAP advice, Recruitment and business opportunities: earnings claims: asa.org.uk
• ASA and CMA, Influencers’ guide to making clear that ads are ads: asa.org.uk
• GOV.UK, CMA new consumer protection regime comes into force (April 2025): gov.uk
• FCA, Protect yourself from scams: fca.org.uk
• FCA, Get-rich-quick, Ponzi and pyramid schemes: fca.org.uk
• Report Fraud: reportfraud.police.uk