Artificial intelligence in investment decision-making: A senior management perception among commercial banks in Kenya

The banking sector is being significantly reshaped by the rapid introduction and application of Artificial Intelligence (AI) in the investment decision-making processes of commercial banks. The purpose of this study, therefore, was to analyze perceptions of AI in investment decision-making by senior management in commercial banks in Kenya. The study was anchored by rational decision-making theory, bounded rationality theory, intuitive decision-making theory, heuristic decision-making theory, and the technology acceptance model. The mixed-methods approach was utilized in the study and survey and in-depth interviews with senior management of commercial banks, with secondary information drawn from industry sources. The target population was the senior managers in the investment department in all the thirty-nine commercial banks in Nairobi City. The study adopted a census approach in all the thirty-nine commercial banks. AI applications allow commercial banks to streamline their workflows and improve the ability to forecast true business health, enabling decision-making based on quality data. AI adoption leads to minimized operational risks and dynamic adaptation of investment strategies due to market changes. The study employed a mixed-methods approach to explore the possibilities of AI, the challenges of AI, and the possibilities of applying AI in the banking sector. The data was analyzed using SPSS version 25 for descriptive and inferential statistics. The results show significant positive correlations: leadership commitment with organizational culture (r=0.65, p