Impact of Artificial Intelligence on Financial Behavior of Individual Investors in Emerging Markets

Abstract

Abstract Artificial intelligence (AI) is rapidly transforming investment decision-making through robo-advisors, algorithmic trading, and AI‑driven analytics platforms. This study examines how AI tools influence the financial behavior of individual investors, with a focus on risk perception, information processing, trading frequency, and portfolio performance. Primary data were collected through a structured questionnaire from individual investors using AI‑enabled investment platforms, supplemented by secondary data from industry reports and academic literature. Descriptive statistics, correlation, and regression analysis were employed to assess the relationship between AI usage and behavioral outcomes such as overconfidence, herding, and loss aversion. The findings indicate that AI tools improve access to information and support more systematic decision-making but can also increase trading frequency and overreliance on machine recommendations. The study concludes that while AI has the potential to enhance financial decision quality, its behavioral implications are mixed and context dependent. The paper offers practical suggestions for investors, financial advisors, platform providers, and regulators to ensure responsible and informed use of AI in investment activities. Keywords: Artificial intelligence, Investor behavior, Robo‑advisors, Behavioral finance, Investment decision-making, Emerging markets.

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