Impact of AI Tools on Retail Investors' Decision-Making in Uttar Pradesh

Abstract This study explores how Artificial Intelligence (AI) tools including robo-advisors, algorithmic trading platforms, and predictive analytics can impact the quality of retail investors' investment decision making in Uttar Pradesh, India. While AI technologies have become more accessible beyond institutional investors, it is essential to understand how they will format investment behavior The importance of this understanding is crucial for areas with large populations like Uttar Pradesh, where people come from various socio-economic backgrounds. A quantitative research design was employed, and data was collected from 144 retail investors utilizing structured questionnaires which assessed participants' awareness, perceptions, and confidence regarding AI tools. Descriptive statistics and one-sample t-tests showed moderate awareness and acceptance of AI's capabilities, specifically in market data analysis and trend prediction, while confidence in AI decision-making based and belief in better returns were still relatively low. As a result, this study reveals that while AI has the potential to improve stock trading decision making, barriers still exist in terms of digital literacy, trust, and experience among retail investors in Uttar Pradesh. In conclusion, the findings indicated the importance of financial literacy campaigns, user-friendly platforms and regulated information that informs potential investors and allows retail investors to consume these AI tools and products to increase financial inclusion and make better investment decisions.