BRIDGING THE DIGITAL DIVIDE – ENHANCING MUTUAL FUND DISTRIBUTION THROUGH AI-DRIVEN PERSONALIZATION AND HYBRID ADVISORY MODELS

Abstract

The integration of artificial intelligence (AI) in mutual fund distribution is transforming investment advisory services through enhanced personalization and efficiency. Traditional advisory models often lack accessibility and personalization, limiting investor engagement, particularly among underrepresented demographics. This study explores AI-driven personalization and hybrid advisory models, assessing their impact on investor decision-making and financial inclusion. A comparative analysis of traditional, AI-driven, and hybrid advisory models highlights the advantages of AI in risk profiling, portfolio customization, and investor engagement. The research incorporates case studies, statistical analysis, and sentiment analysis to evaluate AI's effectiveness in delivering tailored investment recommendations. Findings indicate that AI-powered robo-advisors improve decision-making efficiency and investor participation but face challenges such as ethical concerns, algorithmic biases, and data privacy risks. Hybrid models, combining AI insights with human expertise, enhance trust and provide a balanced approach to wealth management. However, the digital divide and financial literacy gaps remain barriers to adoption. The study concludes that while AI significantly improves mutual fund distribution, regulatory frameworks and inclusive fintech strategies are necessary to ensure ethical implementation. Future research should focus on refining AI-human collaboration to optimize investor experience while addressing ethical and security concerns in financial advisory services.