A Study on The Impact of Generative AI on Investment Decision Making at Motilal Oswal Financial Services Ltd.

Abstract

This study, titled "A Study on the Impact of Generative AI on Investment Decision Making at Motilal Oswal Financial Services Ltd.," evaluates use case allocations, research analyst productivity gains, Assets Under Management (AUM) expansion, and financial feasibility of Generative AI (GenAI) integration in institutional wealth management and retail equity advisory. Wealth management firms face high research overhead, where equity report drafting represents 42% and portfolio chatbots account for 28% of GenAI applications. A five-year project lifecycle (2021-2025) of an enterprise GenAI research platform at Motilal Oswal Financial Services Ltd. is evaluated using capital budgeting parameters: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative analysis reveals that deploying a GenAI research copilot reduces valuation report preparation time to 2.1 hours compared to 18.5 hours under manual research. High research velocity supports advisory AUM growth to 21,800 Crores while expanding retail portfolio annual returns to 34.5%, lifting GenAI tool adoption to 92.4% and compressing decision latency to 1.2 hours by 2025. The financial model yields a positive NPV of 284.5 Crores and an IRR of 38.6%, far exceeding the 10% discount hurdle rate. The study concludes that investing in Generative AI copilot engines is highly viable, boosting equity research efficiency and retail investor portfolio alpha.