AI vs. Traditional Portfolio Management: A Study on Indian Investors

Abstract

This research chapter investigates the dynamics between artificial intelligence (AI) and traditional portfolio management strategies, specifically focusing on the attitudes and preferences of investors in the Indian market. The study aims to elucidate the comparative performance, risk-adjusted returns, and behavioral aspects associated with AI-driven portfolio management as opposed to traditional methods. Utilizing a methodology tailored to the unique characteristics of the Indian investment landscape, this research engages investors with varying degrees of experience in the stock market. Through a meticulous collection of data during October and November 2023, employing convenience sampling, the authors explore the factors influencing investor perceptions and decisions in adopting AI-based portfolio management strategies. These findings contribute to the existing discourse by shedding light on the role of trust, subjective norms, perceived usefulness, perceived ease of use, and attitudes as critical variables shaping the adoption of AI in portfolio management.