A Study on the Role of AI-Based Financial Advisory Services in Investment Decision-Making in Palghar

Abstract

Artificial Intelligence (AI) is increasingly being used in financial services to provide investment-related information, suggestions and personalised support to investors. The present study, titled “A Study on the Role of AI-Based Financial Advisory Services in Investment Decision-Making in Palghar,” examines the awareness, use and factors influencing the adoption of AI-based financial advisory services among investors. The study is based on primary data collected from 280 respondents from Palghar City. A descriptive research design was followed, and respondents were selected through convenience sampling. The study used frequency analysis, descriptive statistics, normality testing, reliability testing and suitable non-parametric statistical techniques for data analysis.

The findings show that awareness of AI-based financial advisory services is developing among investors, although a considerable number of respondents have only limited knowledge of such services. Financial apps and websites were the major sources of awareness. Mutual funds were the most preferred investment option among the respondents. The mean score for the use of AI-based financial advisory services was 3.623, indicating a generally positive response. The reliability results also showed good consistency, with Cronbach’s Alpha values above 0.86 for the major constructs. The correlation analysis showed significant positive relationships between awareness and use, use and investment decision-making, and adoption factors and investment decision-making. However, differences across gender and age groups were not statistically significant. Overall, the study indicates that AI-based financial advisory services are becoming useful sources of investment information and may support investors in understanding and evaluating investment choices.