Behavioral Biases in AI-Assisted Investment Decisions

@article{1722437,
      author = {Rohini K N, Dr. Prakruthi N Udupa},
      title = {Behavioral Biases in AI-Assisted Investment Decisions},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {10},
      number = {2},
      pages = {2179-2182},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1722437.pdf},
      abstract = {Artificial Intelligence (AI) is increasingly integrated into financial services through robo-advisors and trading platforms. These tools promise objectivity and efficiency, yet investor behavior continues to be shaped by cognitive and emotional biases. This study investigates the role of biases overconfidence, loss aversion, emotional control, speed of decision-making, and herding in AI-assisted investment decisions among Indian retail investors. Primary data were collected from 200 respondents using a structured questionnaire, analyzed through descriptive statistics, Chi-Square tests, ANOVA, and regression analysis. Findings reveal that AI enhances confidence and speed but can also amplify overconfidence. Emotional biases remain only partially mitigated, underscoring the enduring role of human judgment. The study concludes that AI should serve as a supportive guide rather than a replacement for human decision-making. Recommendations include strengthening financial literacy, building transparent AI platforms, and enhancing regulatory frameworks.},
      keywords = {behavioral finance, ai-assisted investment, robo-advisors, overconfidence, loss aversion, herding.},
      month = {August},
  }