Artificial Intelligence and its transformative impact on investors' behavior and market dynamics

This paper examines how Artificial Intelligence (AI) is revolutionizing financial markets, with a focus on its impact on investors&s; behavior, trust, and the accessibility of AI tools. Quantitative method was used to study the investors&s; behavior. The results indicate that, though AI is favoured by young investors because it is intelligent and easy to use, issues of trust, bias, and complexity remain. While AI provides a competitive advantage as well as access to more markets, there are regulatory and ethical loopholes that require filling. The research highlights the use of AI in increasing investors&s; confidence and making better decisions while calling on policymakers and developers to provide transparency, fairness, as well as ease of use. This study offers a balanced view of the strengths and weaknesses of AI, toward a greater understanding of its changing role within contemporary finance.