Investigating Generative Artificial Intelligence Usage And Investment Performance Efficiency Among Retail Investors In Coimbatore District

Abstract

This paper investigates the level of the Generative Artificial Intelligence (GenAI) application and its effect on the efficiency of retail investors investment performance in Coimbatore District. The research design will be descriptive and analytical and will be built on the primary data obtained in 200 individuals using a structured questionnaire. The results indicate that GenAI has got a massive adoption, especially among younger and technologically savvy investors who use these applications in the stock market analysis, portfolio management, financial news briefing, and making informed decisions. The findings suggest that a large share of investors thinks that they are performing better in their investments, primarily because they have better analytical tools, faster access to information they need, and fewer reliance on the old forms of advisory services. Nonetheless, the paper also emphasizes the fact that GenAI does not always guarantee higher financial returns because there were investors who did not see any significant increase or even decrease in its performance, which might be explained by the excessive use of AI, the lack of understanding, or the volatility of the markets. The discussion also indicates that GenAI represents a strong decision-support system; however, its performance is highly reliant on the user knowledge, experience as well as strategic implementation. On the whole, the research adds to the existing knowledge about the changing role of the AI in retail investment behavior and the necessity to balance the use of the technological tools with effective financial decision-making in terms of achieving the best possible investment results.