Santhosh Kumar K. and Binupriya M. M. |
Assistant Professor, Department of Commerce at College of Applied Science (IHRD), Kerala.
Abstract
The integration of Artificial Intelligence (AI) tools such as robo-advisors, algorithmic trading platforms, and predictive analytics has transformed the landscape of personal finance and investment decision-making, particularly among young investors. This study explores the extent to which AI tools influence financial decision-making, performance, and literacy among individuals aged 18 to 35. Employing a descriptive and correlational research design with 100 respondents, the research investigates the relationship between AI tool usage, financial outcomes, and decision quality. The findings reveal a strong positive correlation between the use of AI tools and improved financial performance, along with significantly enhanced decision-making effectiveness as evidenced by a paired t-test. Furthermore, multiple regression analysis indicates that both AI usage and financial literacy significantly contribute to better financial outcomes. While AI tools offer accessibility, personalization, and data-driven support, the study also highlights concerns regarding over-reliance, reduced critical thinking, and data privacy. Overall, it is evident from the analysis that AI tools, when complemented by financial literacy, substantially enhance young investors financial decision-making and outcomes, thereby emphasizing the need for balanced integration of technology and financial education in modern investment practices.
Keywords: Artificial Intelligence, Young Investors, Financial Decision-Making, Robo-Advisors
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