AI and Investment Decision: Role of AI in the Indian Stock Market
Authors:
PRAGYA SARASWAT (St. Andrews Institute of Technology and Management, Gurugram)
Puneet Garg
Zofiya Siddiqui
Abstract

The integration of artificial intelligence (AI) in investment decisions has changed the global financial markets, including the Indian stock market. This paper examines how artificial intelligence (AI) improves risk management, investing methods, and market forecasts in the Indian stock market. AI allows investors to analyze vast volumes of unstructured data, spot trends, and make more accurate and efficient data-driven decisions by utilizing big data analytics, natural language processing, and sophisticated machine learning algorithms. The paper examines significant applications of AI, including algorithmic trading, sentiment analysis of news and social media, fraud detection, and portfolio optimization. It also highlights the challenges and ethical concerns related to AI use, such as algorithmic biases, data privacy, and regulatory compliance. It also emphasizes the need for robust frameworks to ensure accountability and transparency. The results show that AI has the potential to greatly aid in the creation of a more efficient and inclusive stock market environment in India as well as the democratization of access to sophisticated financial tools.
Keywords— Investment, Investment Decision, Stock Market, Artificial Intelligence, AI investment tools)

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Published in: GCARED 2025 Proceedings
DOI: 10.63169/GCARED2025.p10
Paper ID: GCARED2025-0282