AI-driven financial insights: A new frontier for investors in Sri Lankan markets

Abstract

The objective of this research is to study the impact of Artificial Intelligence on investment decision-making in the emerging market in Sri Lanka. Data were gathered through a questionnaire distributed in the first quarter of 2024 from 145 professionals who are engaging with decision making exposure to AI in their professional life. There are four independent variables, such as price prediction, financial risk management, decision making, and financial reporting, with the dependent variable, which is investment decision. The smart Partial Least Squarestructural equation (PLS) model was used to measure the relationship among these variables. The findings reinforce AI’s potential to serve not just as a technical aid, but as a strategic tool in investment planning, particularly in developing economies where informed financial decisions are crucial. The research emphasises the perceptions of investment decision makers who are debut users of AI technology. The results of this study will enable the institutions to implement AI in crucial decision making.