• Dr. T. Sudha Singh
• D. Soumya Shri
• Darpan Rathi
• Nishita Shah

This paper explores the transformative role of AI-driven investment and portfolio management in Indian financial markets, focusing on efficiency, portfolio optimisation, risk mitigation, and investor behaviour. Artificial intelligence (AI), enhanced by machine learning (ML), natural language processing (NLP), and big data analytics, is reshaping how both institutional and retail investors manage assets. Regulatory liberalisation and the rapid adoption of digital investment platforms have accelerated this shift. The study examines how wealth management firms, robs-advisors, and trading platforms employ AI/ML for personalised investment suggestions, automated rebalancing, dynamic risk assessment, and strategy backtesting. These tools, once limited to institutional players, now enable retail investors to access sophisticatedportfoliostrategies. Adopting a mixed-methods approach, combining quantitative analysis of BSE/NSE-listed equities with qualitative insights from regulatory filings, industry reports, and academic literature, the research identifies benefits such as improved diversification, enhanced risk-adjusted returns, reduced behavioural biases, faster execution, and lower transaction costs. Challenges include over-reliance on algorithmic outputs, model overfitting, AI-driven short-term volatility, and systemic risks during market stress. While SEBI’s regulations and AI-based surveillance address some concerns, issues of equitable accessandpotentialdatabiaspersist.The paper also highlights sentiment analysis, using NLP on financial news and social media, to predict market trends with strong correlation to asset price movements. Comparative analysis of AI-predicted portfolio performance versus actual results for select companies (2018–2025) demonstrates high predictive accuracy. A hybrid model combining AI-driven insights with human judgment isrecommendedtoenhancemarketefficiency,resilience,andinclusivity.

AI, Portfolio Management, Risk Assessment, AT, Sentiment Analysis, NLP.

" AI-DRIVEN INVESTMENT AND PORTFOLIO MANAGEMENT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 8, page no.64-74, August-2025, Available :http://www.jetir.org/papers/JETIRHC06008.pdf

" AI-DRIVEN INVESTMENT AND PORTFOLIO MANAGEMENT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 8, page no. pp64-74, August-2025, Available at : http://www.jetir.org/papers/JETIRHC06008.pdf