Gen-AI Investing: Smart Moves or Is It Just Too Risky?

Risks include data privacy concerns, lack of regulation and misleading suggestions

- Simarjeet Singh & Hardeep Singh Mundi

Imagine asking your phone, "Can I afford a Goa trip this month and still invest enough?" In seconds, an app analyses your income, spending and investments to offer a personalized budget. The twist? Your advisor is Generative AI (GenAI)—the technology behind chatbots like ChatGPT.

This scenario is already taking shape for Indian investors. Unlike traditional AI, GenAI not only analyses data but also generates content—advice, market insights, and tailored budgets—in real time. India, now ChatGPT's fastest-growing market, shows how quickly this tech is shaping financial decisions.

Fintechs and banks alike are adopting GenAI. The app Jar invests spare digital change into gold, making micro-investing simple. Fi Money uses a chatbot to answer detailed questions about spending and savings. Zerodha, India's biggest brokerage, is testing GenAI internally but stays cautious on customer-facing use—balancing innovation with responsibility.

Why the excitement?