IMPACT OF AI-POWERED INVESTMENT TOOLS ON RETAIL INVESTORS’ DECISION-MAKING BEHAVIOUR

Abstract

Artificial Intelligence (AI) has rapidly transformed the financial services sector by introducing automated advisory platforms and algorithm-driven investment
solutions that support modern investors in making faster and more informed financial decisions. This study looks at how AI-powered investment tools affect Indian
retail investors' decision-making, with a particular emphasis on how technology affects risk perception, investment selections, and portfolio management
techniques. 347 retail investors provided primary data via well-known investment platforms like Kuvera, Groww, Upstox, and Zerodha. The study assesses
important variables like demographics, perceived usability, behavioral results associated with investment decisions, and trust in AI systems. Descriptive statistics,
correlation analysis, regression analysis, t-tests, and ANOVA using SPSS were among the quantitative research methods used to guarantee reliable analysis. The
results show that trust and usability are important factors in promoting AI adoption and enhancing the return on investment. Compared to non-users, investors who
utilize AI-based tools typically demonstrate more disciplined investment behavior, better risk management, and a more diversified portfolio. All things considered,
the study offers significant insights for investors, FinTech companies, and policymakers, emphasizing the value of trustworthy and user-friendly AI systems in
boosting technology-driven financial decision-making and encouraging broader adoption of digital investment solutions in India.