Role of artificial intelligence in understanding psychological influences on investment decisions: A behavioral finance study among IT/ITES employees

This paper analysis an effect of Artificial Intelligence (AI) on understanding psychological factors that affect
investment choices in the context of behavioral finance, specifically among IT/ITES employees. The study looks into the
ways AI may be used to study and understand the behaviour of herds, fear of loss, trustworthiness, and confidence, all of
which have a big impact on investing decisions. Data were obtained from 142 IT/ITES employees out of 170 selected
respondents in Chennai, highlighting that psychological factors show significant differences based on gender, with male
employees rating these factors higher than female employees. This research paper proposes a novel research design by
standardized tools and Likert scale questionnaires to gather data, which AI then analyzes to provide deeper insights into
the cognitive and emotional factors driving investment behaviors. These insights suggest that IT/ITES employees should
cultivate positive attitudes towards financial investments, as this can enhance their investment character. Moreover, the
study advises against relying on information from significant others, as it may lead to poor investment decisions. The
research also recommends conducting a similar survey of non-IT/ITES employees to validate these findings.
Keywords. Psychological Factors, Investment Decision Process, Loss Aversion, and Herd Behaviour.