Leveraging Generative AI to Address Behavioral Biases in the Investment Decisions of Gen Z and Millennials
description: GAI alters financial decision-making behavior through advanced data analytics, trend prediction, and personal recommendation. Generation Z and the Millennials are more susceptible to behavioral biases like herd mentality, loss aversion, overconfidence, and fear. Such tendencies make people prone to frequently exhibiting instinctive or irrational investment behaviors, thus severely impacting their long-term financial outcome. In the context of this book, the relationship between behavioral finance and GAI is discussed with the benefits of enhancing investment literacy and in guiding the younger investor towards data-driven decisions. Other areas on data quality and transparency, ethical concerns, and regulatory compliance are discussed. Hence, this can result in intelligent and rational investment decisions. The subsequent section explains how GAI successfully eliminates the effects of cognitive biases through an enhancement of the capabilities concerning decision-making in respect of financial choices related to Generation Z and millennials under the everchanging finance landscape. 2026, IGI Global Scientific Publishing. All rights reserved.
creator: Grover, Diya; Sangal, Surabhi; Shabir, Suheela Shabir
source: Generative AI Insights for Financial Decision Making;pp.361-385
publisher: IGI Global
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISBN: 979-833731252-1; 979-833731250-7;
language: English
type: Book chapter
coverage: Grover D., Christ University, India; Sangal S., Christ University, India; Shabir S.S., Princess Noura Bint Abdulrahman University, Riyadh, Saudi Arabia