Indian Brokerages Embrace AI for Analysis, Halt at Stock Picking Due to Risks & Regulations

• Indian brokerages like Angel One, Dhan, Groww, Fyers, and Zerodha are integrating AI for faster analysis, personalized insights, and conversational interfaces.
• AI is primarily used for internal efficiency, customer support, news summarization, and portfolio analysis, not direct stock recommendations.
• Firms are developing vertical AI models (e.g., Dhan's 'Fuzz') trained on India-specific financial data to provide deeper market context.
• Regulatory uncertainty, accountability, explainability of AI models, and potential for overtrading prevent AI from picking stocks or giving direct advice.
• SEBI is developing guidelines for responsible AI use, focusing on investor protection, market integrity, and financial stability.

Why It Matters: AI transforms portfolio analysis for Indian brokerages, but direct stock picking remains human-led due to risks.