Is artificial intelligence a linking bridge between emotional intelligence and investment behaviour?

Abstract

This study examines the relationships among emotional intelligence, artificial intelligence, and investment decisions within contemporary financial decision making. Drawing on data from 410 investors and applying structural equation modelling, the study tests whether emotional intelligence, captured through self-awareness, self-regulation, motivation, social awareness, and social skills, shapes investment decisions, and whether artificial intelligence mediates this relationship. The measurement model confirms strong loadings across all constructs, and the structural results show that each dimension of emotional intelligence, together with artificial intelligence, significantly predicts investment decisions, with artificial intelligence recording the strongest direct effect. Mediation analysis further indicates that artificial intelligence partially mediates the relationship between emotional intelligence and investment decisions, evidenced by both a significant direct effect of emotional intelligence and a significant indirect effect transmitted through artificial intelligence. These findings position artificial intelligence not as a replacement for human judgment but as a complementary mechanism that channels emotionally informed insight into more consistent investment behaviour. The study offers practical guidance for financial practitioners, technology developers, and policymakers seeking to integrate behavioural and algorithmic tools responsibly, while underscoring the continuing need for transparency and ethical oversight as artificial intelligence becomes more embedded in investment decision making.