Generative Artificial Intelligence (GenAI) is increasingly being used by individual investors to obtain, understand and process financial information. This study examines the influence of Generative AI-based financial advice on investment decision-making among young retail investors in India using secondary data from recent Indian empirical studies and official regulatory sources. The study focuses particularly on the relationship between Generative AI usage, financial self-efficacy and investment decision quality, while also considering the role of behavioural biases. The main evidence is drawn from a two-wave longitudinal study of 520 Indian IT-sector employees. The study reported that 78.4% of respondents had used at least one Generative AI tool for financial queries and that 60.2% of respondents were between 18 and 34 years of age. Generative AI usage was positively associated with financial self-efficacy (β = 0.443, p < .001), while financial self-efficacy was positively associated with investment decision quality (β = 0.512, p < .001). A significant direct relationship was also reported between Generative AI usage and investment decision quality (β = 0.374, p < .001). The study further reported a significant indirect relationship through financial self-efficacy (β = 0.227, p < .001). However, overconfidence weakened the positive relationship between AI usage and investment decision quality. Additional Indian research involving individual investors indicates that AI may help reduce certain behavioural biases such as anchoring and herding, although overconfidence, representativeness and loss aversion remain relevant to investment decisions. Overall, the secondary evidence suggests that Generative AI can positively influence investment decision-making among young Indian investors, particularly by improving access to financial information and supporting financial self-efficacy. However, the benefits are not automatic, and behavioural biases and excessive reliance on AI remain important limitations.

Gayatri Ganesh Naik, Dr. Ujwala Narkhed, "Influence of Generative AI-Based Financial Advice on Investment Decision-Making among Young Retail Investors in India" International Journal of Scientific Research and Engineering Development, V9(5): Page(622-628) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.