IMPACT OF ARTIFICIAL INTELLIGENCE ON INVESTMENT DECISIONS OF RETAIL INVESTORS IN MUMBAI CITY
DOI:
https://doi.org/10.1956/jge.v22i3.875Abstract
Artificial Intelligence (AI) is increasingly transforming the financial services sector by influencing how retail investors access information, evaluate alternatives, and make investment decisions. The present study examines the impact of AI-based investment tools on the decision-making process and investment behaviour of retail investors in Mumbai City. With the rapid growth of fintech platforms, widespread smartphone usage, and improved digital financial infrastructure, investors now have access to AI-driven recommendations, predictive analytics, robo-advisory services, and real-time market insights, significantly altering traditional investment practices.
The research is based on both primary and secondary data, with primary data collected through a structured questionnaire from retail investors in Mumbai. The research analyses demographic characteristics, investment preferences, awareness and usage of AI-enabled financial tools, and the perceived benefits of AI in investment decisions.
The findings indicate that AI positively influences retail investors by improving access to financial information, enhancing decision-making speed, offering personalised investment recommendations, and supporting risk assessment. AI-based platforms also contribute to greater investor confidence and convenience, thereby encouraging broader participation in modern financial markets. However, concerns relating to overdependence on technology, data privacy, and trust in automated recommendations remain relevant considerations.
The study concludes that AI is playing a significant role in reshaping investment behaviour among retail investors and is becoming an essential component of contemporary investment decision-making. The research provides useful insights for fintech firms, policymakers, and investors regarding the adoption and effectiveness of AI in personal finance and investment management.
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