Algorithmic Dependence in AI-Driven Investment Decisions among Indian Advisors
DOI:
https://doi.org/10.54741/MJAR/6.5.2026.331Keywords:
algorithmic dependence, decision effectiveness, indian advisors, investor confidence, perceived accuracy, risk-taking behaviourAbstract
India is witnessing a tremendous change in the pattern of investment behaviour due to the intervention of Artificial Intelligence in driving the advisory behaviour and ultimately affecting the decision-making among the investors/advisors. The study attempts to examine the algorithmic dependent advisory behaviour of portfolio managers/advisors in applying AI tools for investment decision-making over their personal judgement to time the market. The study is administered through structured questionnaire on 150 portfolio managers/investment advisors across Inda. The research indicates that investor advisors rely majorly on the AI-driven platforms for investment recommendations to their retail clientele. They strongly agree to follow the recommendations offered by the AI platforms. The respondents agree that their confidence is increasing in market predictions and they strongly believe that AI driven market predictions are better than their judgements on investment decisions. AI-driven algorithmic advisory indeed has developed and enhanced the performance confidence among the advisors but excessive dependence on algorithmic advisory can be alarming as it shall impact the habit of independent critical thinking. The paper attempts to contribute to the growing domain of behavioural finance in India and attempts to invite further research to investigate the rising and changing behaviours in investment and advisory due to AI interventions.
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Copyright (c) 2026 Pooja Gupta, Shreyansh Khare, Samkit Pareta
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