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Traditional portfolio management techniques have changed as a result of artificial intelligence (AI) being incorporated into financial markets, especially in emerging nations where information asymmetry and volatility are prevalent. The effect of AI technologies on portfolio diversification in emerging markets is investigated empirically in this study.
A descriptive and quantitative research design was used in the study. 50 respondents provided primary data using a standardized questionnaire that was disseminated using Google Forms. Investor awareness, uptake, and perceived efficacy of AI tools in risk assessment, diversification, and asset allocation were assessed by the questionnaire. Techniques for graphical depiction, mean score interpretation, and percentage analysis were used to examine the gathered data.
The results show that while there is a moderate level of awareness of AI capabilities, there is still little active reliance on AI for diversification decisions. Nonetheless, investors that employ AI-based tools report being able to identify non-correlated assets more easily and assessing risk more effectively. The report emphasizes that although AI technologies are still in the early stages of adoption in emerging economies, they have a favorable impact on portfolio diversification.
"Artificial Intelligence in Finance: Examining the Impact of AI Tools on Portfolio Diversification in Emerging Markets", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.11, Issue 3, page no.a128-a132, March-2026, Available :http://www.ijrti.org/papers/IJRTI2603021.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator