International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 5 (September-October 2026) Submit your research before last 3 days of October to publish your research paper in the issue of September-October.

Artificial Intelligence and Behavioural Finance: Correcting Biases or Creating New Risks?

Author(s) Mr. Vihaan Jain
Country India
Abstract The rapid emergence and integration of Artificial Intelligence (AI) in the financial sector have led to many concerns regarding the potential impact on investors' behavior and decision-making. This paper attempts to resolve the research problem related to the role and potential impact of AI in the field of behavioral finance. The research focuses on the following aspects through a case study approach: AI-based robo-advisors in Southeast Asia, sentiment analysis through the “photo pessimism” study, and ethical concerns in generative AI-based financial advice. The results show that AI can be an effective tool in removing emotional biases from investors' behavior, such as panic selling and overconfidence, by adopting a disciplined approach to investments. Moreover, it helps in better understanding market sentiments through the analysis of data from photographs and media, indicating the role of group emotions in determining market sentiments. However, there are many challenges and concerns related to the role and potential impact of AI in the field of behavioral finance. The findings suggest that AI can play a significant role in improving efficiency, enhancing financial decision-making, mitigating investor biases, and interpreting market sentiment, while also introducing ethical and transparency challenges.
Keywords Artificial Intelligence, Behavioural Finance, Robo-Advisors, Sentiment Analysis, Explainable AI
Field Mathematics > Economy / Commerce
Published In Volume 8, Issue 5, September-October 2026
Published On 2026-10-08
DOI https://doi.org/10.36948/ijfmr.2026.v08i05.87663

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