Impact of Generative AI Adoption on the Trading Patterns of Retail Investors

Author

Naralasetty Hiranya, Dr. Meda Srinivasa Rao


Abstract

 The growth of GenAI has introduced new ways for retail investors to get their hands on, process and use financial data to make their investment and trading decisions. Investors can also leverage generative AI apps and services, including ChatGPT, Google Gemini and Microsoft Copilot, to help them understand and analyse financial data, keep abreast of market trends, discover investment ideas and make trading decisions. The increasing access to such services and applications also has the potential to influence the way retail investors interact with financial markets and inform their trading decisions. This study examines how the usage of Generative AI (GenAI) tools influences retail investors’ trading behaviour. This research looks into how much people use Generative AI, why they use it, and how it connects to different parts of trading behavior like how often they trade, the choices they make, how much risk they take, how long they hold their trades, and their trading style. The approach used for the current study will be a quantitative method based on the use of primary data collected using an on-line survey completed by the retail investors themselves. The data are looked at using appropriate descriptive and inferential statistics. The results of this study point to a conclusion about how Generative AI affects retail investors' trading.



Keywords

Generative Artificial Intelligence, Retail Investors, Trading Patterns, Investor Behaviour, AI Adoption, Financial Markets.



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References


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