SEBI deploys AI tools as annual report finds 62% investors follow finfluencers

The SEBI Annual Report has laid out the market regulator’s technology-first roadmap for safeguarding investors, with Chairman Tuhin Kanta Pandey revealing that nearly two-thirds of investors are influenced by finfluencers and announcing a new generation of artificial intelligence tools to tackle misleading financial content online.

Highlighting the changing nature of market supervision, Pandey said investor protection can no longer rely solely on conventional regulatory mechanisms as financial advice increasingly migrates to social media platforms.

AI takes centre stage in market surveillance

A key finding of SEBI’s latest investor survey was that 62% of investors are influenced by finfluencers, many of whom operate without regulatory oversight or verifiable performance records.

Calling this a growing challenge, Pandey said SEBI has responded by deploying AI-powered supervisory technology.

“This digital vigilance is further necessitated by our latest Investor Survey, which revealed that 62% of investors are influenced by finfluencers – many of whom operate without accountability or verified performance data.”

To strengthen oversight, the regulator has launched Project Sudarsan, an AI platform designed to monitor unsolicited financial advice circulating across social media. Alongside it, the market watchdog has deployed R(AI)DAR, an artificial intelligence-enabled system that reviews advertisements issued by asset management companies, helping identify misleading or unauthorised promotional content before it reaches investors.

Building trust in a digital-first market

Pandey said data has become as critical to market integrity as traditional market infrastructure, requiring regulators to invest in technology that scales alongside investor participation.

“SEBI has responded to this shift by investing in technology and data analytics as core supervisory tools, ensuring that while the market scales, the safety net for the investor scales even faster.”

The chairman also pointed to initiatives such as validated UPI handles, the SEBI Check facility and verified app labels on Google Play as part of a broader effort to help investors distinguish legitimate intermediaries from fraudulent operators.

Technology with accountability

While embracing AI-driven oversight, Pandey stressed that technology alone cannot replace informed investing. Investor education remains central to SEBI’s strategy, with nearly 3.9 lakh awareness programmes conducted during 2025-26 and nationwide campaigns such as “SEBI vs SCAM” aimed at strengthening financial literacy.

The annual report signals that SEBI’s regulatory focus is shifting from merely expanding market access to building resilience through technology, with AI expected to play an increasingly important role in preserving market integrity, curbing misinformation and protecting India’s growing base of retail investors.