Analysis for Rational and Irrational Investment Using Artificial Intelligence

Abstract

The present research has been focused on the emerging use of Chatbots which are part of Conversational AI domain. Conversational AI is again a subset of the Artificial Intelligence domain. While there are many applications for Conversation AI on marketing and customer support side, there is limited use in stock markets. There is also a void created in the stock investing lifecycle wherein individuals may find themselves alone in making investment decisions without any intervention from physical brokers. They may do so due to attractive returns in the stock markets. This is an area for which we may need some regulation or control to safeguard retails investors. The financial institutions are not responsible for irrational investments. Hence new tools and processes could be researched which can promote rational investing. As part of this study, empirical research is being done to devise a Chatbot and evaluate it with an experimental study with the retail investors. Additionally, feedback from them around cognitive bias related measures shall be taken to get an understanding of the investor requirements and usefulness of Conversational AI to them newline