Impact of Artificial Intelligence in Investment and Decision Making

This research examines the growing impact of Artificial Intelligence (AI) on investment decision-making and financial management. Using the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) framework, this study systematically reviews 30 carefully selected research articles drawn from academic databases and leading industry reports published between 2020 and 2024. The research evaluates how AI-powered tools influence decision quality, investor confidence, risk management, portfolio optimisation, and ethical considerations. The findings confirm that AI demonstrably improves forecasting accuracy, risk assessment, and portfolio construction in data-rich environments. However, investor trust remains conditional on transparency and explainability, while ethical concerns around bias, accountability, and systemic risk require urgent regulatory attention. The study concludes that the optimal model for AI in investment is a hybrid approach, where AI handles analytical processing and human professionals retain responsibility for final decisions and ethical oversight. (Davenport & Harris, 2007; Sironi, 2016; Philippon, 2016).