The Impact of AI-Based Investment Applications on Students’ Financial Decision-Making

Abstract

This study aims to analyze the effect of the use of Artificial Intelligence (AI)-based investment applications on the quality of financial decision-making of students of the Management Study Program of the University of 17 Agustus 1945 (UNTAG) Banyuwangi. Although AI-based investment apps are growing in popularity among college students, there has been controversy over their accuracy and users' potential reliance on automated recommendations. In the midst of the increasing trend of application use, the low financial literacy condition of students creates an urgency to evaluate the effectiveness of AI as a tool to support investment decisions. This study used a quantitative method with a simple random sampling technique, and the sample calculation using the Slovin formula produced 257 respondents from a population of 717 students. Data analysis was carried out by simple linear regression, with independent variables in the form of the level of use of AI-based investment applications and dependent variables in the form of the quality of student financial decision-making. The results of the study show that the use of AI-based investment applications has a positive and significant effect on the quality of student financial decision-making. These findings indicate that although controversial, AI-based investment applications have the potential to be a promising solution in improving the risk understanding and rationality of students' financial decisions. This research provides implications for educational institutions and application developers to optimize the use of AI in the financial literacy of the younger generation.