Investor Over-Reliance on AI Recommendations and Its Impact on Investment Behaviour

The process of investment decision making is getting new shapes through Artificial Intelligence (AI). With the emergence of AI, a remarkable transformation has been witnessed in the financial advisory landscape. Gen Z represents the youngest segment of the work force and the investors. Higher literacy rate, curiosity, innovative mindset, dynamic decision making and instant consumption are some of the basis characteristics of this generation which makes them push towards AI recommendations while making any investment. Users trust the AI system only if they are consistent, transparent, and reliable. Trust is one of the most vital factors for Gen Z investors while evaluating AI advisors to shape their preferences over humans. A sample of 285 investors from generation Z were surveyed to know their opinion over-reliance on AI recommendations and its impact on their investment behaviour. The study determined that there is an over-reliance of Gen Z on AI recommendation on investment behaviour.