Trust in Artificial Intelligence and the Adoption of Responsible Investing: An Empirical Study

The rapid integration of artificial intelligence (AI) into financial decision-making has reshaped the dynamics of investment behaviour, particularly in the context of environmental, social, and governance (ESG) and socially responsible investing (SRI). This study examines how perceived transparency and ethical reliability of AI-enabled investment platforms influence trust in AI, and how that trust affects investors’ adoption of responsible investing practices. Drawing upon the Technology Acceptance Model (TAM), trust in automation theory, and ethical AI frameworks, a structured questionnaire was administered to 250 retail investors who use AI-driven FinTech platforms. Data were analysed using SPSS 23 and Hayes’ PROCESS macro for mediation analysis. Results revealed that trust in AI significantly predicts responsible investing intention (R² = .463, p < .001), while transparency and ethical reliability emerged as strong antecedents of trust (R² = .506 and .320, respectively). Mediation analysis confirmed that trust partially mediates the relationship between transparency and responsible investing (R² = .473), indicating that transparency fosters responsible investment both directly and indirectly through enhanced trust. The study extends existing technology acceptance and sustainable finance literature by integrating ethical AI and behavioural trust into the responsible investment paradigm. Practically, the findings emphasise the need for transparent, explainable, and ethically designed AI systems to build investor confidence and promote sustainable financial ecosystems aligned with India’s Viksit Bharat @ 2047 vision.