Journal of African Development

Artificial Intelligence (AI) has emerged as a transformative force in the financial sector, revolutionizing investment planning, portfolio management, and financial decision-making processes. This study examines the role of AI technologies such as machine learning, predictive analytics, robo-advisors, big data analytics, and algorithmic trading in improving the efficiency and accuracy of financial decisions.

The research investigates how AI assists investors in risk assessment, portfolio diversification, fraud detection, market prediction, and automated investment advisory services. The study also explores the psychological and behavioral impact of AI-driven systems on retail and institutional investors.

Using a quantitative research methodology, primary data was collected from investors, finance professionals, and students through structured questionnaires. Statistical tools such as correlation analysis, regression analysis, and descriptive statistics were employed to analyze the data.

The findings reveal that AI significantly enhances investment efficiency by reducing human errors, enabling real-time market analysis, and providing personalized investment recommendations. However, concerns regarding data privacy, algorithmic bias, lack of transparency, and overdependence on automated systems remain major challenges.

The study concludes that AI has become an indispensable component of modern financial systems and will continue to reshape investment planning through intelligent automation, predictive capabilities, and enhanced financial accessibility