Artificial intelligence (AI) is becoming an important part of investment research and financial decision-making. It is used to analyse information, support portfolio decisions, assist trading, monitor risk, detect fraud and improve investor services. This paper looks at how AI may affect the speed, consistency and quality of financial decisions, with a particular focus on India’s securities markets. The study is based on secondary information from institutional publications and selected academic literature, including material from the International Monetary Fund (IMF), the Securities and Exchange Board of India (SEBI), the Bank for International Settlements (BIS) and the National Institute of Standards and Technology (NIST). No original survey or respondent data were collected. The reviewed evidence shows that AI can process large amounts of structured and unstructured information and identify patterns that may be difficult to detect manually. The IMF reported that AI-related content in algorithmic-trading patent applications increased from 19% in 2017 to more than 50% each year from 2020 onward. It also reported that AI-driven exchange-traded funds (ETFs) may turn over their holdings about once a month, while typical actively managed equity ETFs turn over holdings much less than once a year. These figures indicate increased activity, but they do not prove that AI-based strategies earn better risk-adjusted returns. The paper discusses potential benefits such as faster analysis, wider information coverage, scenario testing and ongoing risk monitoring. It also considers risks, including biased data, overfitting, limited transparency, cyber threats and similar models reacting in the same way during market stress. The main conclusion is that AI should support—not replace—responsible human judgement. Proper testing, oversight, transparency, data protection and continuous monitoring are essential.

Harish Namdeo Jadhav, Dr. Ujwala Narkhede, "Role of AI In Investment and Financial Decision-Making" International Journal of Scientific Research and Engineering Development, V9(5): Page(1461-1473) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.