AI-ENABLED FINANCIAL LITERACY AND INVESTMENT DECISION QUALITY AMONG RETAIL INVESTORS IN KANYAKUMARI DISTRICT

Abstract

Modern financial applications, powered by Artificial Intelligence (AI), have revolutionized the way retail investors access market data and evaluate investment options, leading to a significant shift in personal portfolio management. Market participants today must have a thorough understanding of algorithm-based recommendation systems, their operational boundaries, reliability, and data privacy risks, in addition to having access to conventional financial knowledge. This empirical study investigates five crucial aspects of contemporary retail finance, namely AI Financial Knowledge, AI Tool Adoption, Algorithmic Trust, Perceived Security Risk, and Investment Decision Quality among retail investors in Kanyakumari District, Tamil Nadu. They are the focus of this research. 75 retail investors were surveyed using a purposive sampling strategy, which involved filling out dozens of questions on. the 5-point Likert scale with structured data. Basic percentage analysis, as well as arithmetic mean and standard deviation, were utilized to evaluate the collected answers. These discoveries establish a baseline empirical evidence for how local investors perceive AI investment tools, their confidence in automated advice, the security of their data and their quality of decision-making. To ensure investors use automated financial platforms responsibly, the study emphasizes the importance of fostering digital financial awareness through practical education along side basic financial literacy.

Keywords: Artificial Intelligence, AI-Enabled Financial Literacy, 'AI Financial Knowledge', Adoption of AI tools, Algorithmic Trusting Process, Perceived Security Risk (PSR), Investment Decisions, Retail Investors