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AI and Behavioural Finance in India: Opportunities and Challenges

Palak Baxi & Kanishtha Vyas

The blend of Artificial Intelligence (AI) and behavioural finance has transformed the landscape of financial decision-making. Behavioural finance, which examines the psychological influences on investors, and AI, with its data-driven predictive power, when combined together offer both unprecedented opportunities and significant challenges. This paper explores how AI can manage behavioural biases, enhance decision-makingand drive strategic investment while addressing the challenges and ethical concerns that come along. Drawing on interdisciplinary research, including psychographic segmentation, deep learning models, and case studies, the paper provides a comprehensive understanding of how AI is reshaping behavioural finance.


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