Open Access Research Article
GENERATIVE AI AS A DE FACTO FINFLUENCER: EXAMINING REGULATORY GAPS AND LIABILITY UNDER INDIAN SECURITIES LAW
Abstract
The
rapid integration of Generative Artificial Intelligence into financial services
has changed how investment-related information is made, shared and used. AI
systems are now able to produce market reports, answer questions and affect
investment choices through customised communication.[1]
These advancements have made financial information easier to access. They have
also made it harder to tell the difference between technology tools,
finfluencers and traditional investment advisers. Therefore, new concerns have
come up about how to protect investors, who should be held responsible and how
to properly supervise these systems.[2]
This
paper looks at the growing role of Generative AI as a kind of finfluencer in
the world. It checks how well India’s current laws can handle the problems
created by AI-generated advice. Using analysis and comparisons with other
countries the study looks at laws like the Securities and Exchange Board of
India Act, 1992; the SEBI (Investment Advisers) Regulations, 2013; the SEBI
(Research Analysts) Regulations, 2014; the Information Technology Act, 2000 and
the Consumer Protection Act, 2019. It also examines how the United States, the
European Union, the United Kingdom and Singapore are handling these issues.
The
paper argues that current Indian laws were made to regulate people, not technological
intelligence.[3] As
a result, these laws are not ready for the challenges that come with AI-driven
advice. Important questions remain, like how to classify advice made by AI, who
should be held accountable when something goes wrong and how to protect
investors effectively. The study ends with recommendations for regulation. It
suggests treating AI-generated advice as its own kind of financial influence.
It also calls for rules about transparency and makes it clear that the
companies using AI in financial markets must be held responsible. These changes
are necessary to support innovation while still protecting the integrity of the
market and keeping investors safe.
Keywords:
Generative Artificial Intelligence, Finfluencers, Investment Advice, SEBI,
Technological Intelligence, Transparency.
[1] OECD, Artificial
Intelligence in Finance: Opportunities and Challenges for Investors (OECD
2024).
[2] International Organization
of Securities Commissions (IOSCO), Artificial Intelligence and Retail
Investor Protection (IOSCO 2024).
[3] Securities and Exchange
Board of India Act 1992; SEBI (Investment Advisers) Regulations 2013; SEBI
(Research Analysts) Regulations 2014.
Published Paper
Author Details
Authors: TANISHKA SINGHRegistration ID: 1013624 | Published Paper ID: IJLRA13624Approved ISSN: 2582-6433 | Country: Delhi, India
Article Information
GENERATIVE AI AS A DE FACTO FINFLUENCER: EXAMINING REGULATORY GAPS AND LIABILITY UNDER INDIAN SECURITIES LAW
Authors: TANISHKA SINGH
- Journal IJLRA
- ISSN 2582-6433
- Volume 3
- Issue 8
About Journal
International Journal for Legal Research and Analysis
- AbbreviationIJLRA
- ISSN2582-6433
- AccessOpen Access
- LicenseCC 4.0
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