The Behavioral Impact of Artificial Intelligence on Investor Decision Making and Investment Strategies

This study examines how investors’ perceptions of artificial intelligence (AI) are associated with investor behavior, focusing on short-term and long-term investment strategies and their implications for investor resilience. While prior research has primarily emphasized the technical capabilities of AI in financial decision making, less is known about how investors perceive these technologies in practice. Using survey data from 221 individual investors and partial least squares structural equation modeling (PLS-SEM), the study analyzes how different dimensions of AI perception affect investment strategies. The results show that perceived efficiency and positive expectations regarding the future role of AI positively influence both short-term and long-term investment strategies. In contrast, perceived accuracy is associated with lower engagement in short-term strategies, suggesting greater reliance on AI-generated recommendations. Most notably, perceived forecasting ability is negatively related to long-term investment strategies, indicating that stronger belief in AI’s predictive capabilities may encourage a shift toward shorter investment horizons. The findings demonstrate that different dimensions of AI perception are associated with investment behavior in different ways. While some AI-related perceptions may support more disciplined and potentially resilient investment behavior, others may encourage greater dependence on automated forecasts and reduced long-term orientation. The study contributes to understanding the behavioral implications of AI in financial decision making.