The Impact of Artificial Intelligence Tool Used on Retail Investors’ Trading Frequency, Risk Appetite, and Herding Behaviour

DOI

10.2991/978-94-6239-801-6_26How to use a DOI?

Keywords

Artificial Intelligence Tool; Retail Investors; Trading Frequency; Risk Appetite; and Herding Behaviour

Abstract

This article aims to systematically explore the impact of the use of artificial intelligence (AI) tools on the transaction frequency, risk preference and herd effect of retail investors, and on this basis, put forward behavioural guidance and institutional optimisation suggestions. The study found that the impact of AI tools on the transaction behaviour of retail investors shows significant duality and complexity: in terms of transaction frequency, the use of AI tools reduces the transaction threshold and increases the transaction frequency of retail investors, but the rational analysis characteristics of AI tools also inhibit the excessive transaction of some retail investors; in terms of risk preference, although AI tools strive to enhance decision-making rationality, they may distort investors’ income expectations and risk perception due to algorithm “black box” and automated narrative, and induce irrational risk assumption; in terms of herd effect, AI tools do not eliminate crowd behaviour, but reconstruct and strengthen the “algorithm-driven herd” through mechanisms such as model homogenisation, signal standardisation and feedback acceleration. This article further puts forward suggestions from the aspects of retail cognitive management and regulatory system design, emphasising that investors should transform into “algorithm critics”, and supervision should seek a dynamic balance between stimulating innovation and preventing risks.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Chen Peng
PY  - 2026
DA  - 2026/10/23
TI  - The Impact of Artificial Intelligence Tool Used on Retail Investors’ Trading Frequency, Risk Appetite, and Herding Behaviour
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 231
EP  - 239
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_26
DO  - 10.2991/978-94-6239-801-6_26
ID  - Peng2026
ER  -