The Gamification Trap: How Robo-Advisor Push Notifications Trigger Dopamine Loops and Over-Monitoring in Passive Investors

¹ Nikhil A, ² Dr Vinod Krishna M.U

1Master of Business Administration, Dayananda Sagar College of Engineering, India

E-mail: nikinikhil759@gmail.com

2Professor, Dayananda Sagar College of Engineering, India

E-mail: vinod-mba@dayanandasagar.edu

ABSTRACT

The rapid adoption of Artificial Intelligence (AI)-enabled robo-advisory platforms has transformed investment management by providing automated portfolio recommendations, personalized financial planning, and continuous digital engagement. Modern robo-advisory applications increasingly incorporate gamification elements such as achievement badges, investment milestones, progress indicators, and push notifications to enhance user interaction and platform retention. While these engagement mechanisms improve user experience, they may unintentionally influence the behavioural patterns of passive investors whose investment philosophy is based on long-term portfolio holding and minimal market intervention.

This study investigates the influence of gamified push notifications on portfolio-monitoring behaviour, investor engagement, and investment decision-making among passive investors using AI R US as the reference platform. A quantitative descriptive research design was adopted, and primary data were collected using a structured questionnaire administered to robo-advisory users. Statistical analyses including descriptive statistics, reliability analysis, correlation analysis, and hypothesis testing were employed to evaluate the proposed relationships among gamification, push notifications, investor engagement, portfolio monitoring behaviour, and investment decision quality.

The findings indicate that gamification features significantly increase user engagement, while frequent push notifications encourage excessive portfolio monitoring beyond what is required for long-term investing. The study further suggests that continuous digital engagement may reduce investment discipline by increasing emotional responses to short-term market fluctuations. These findings contribute to behavioural finance literature by extending the understanding of how persuasive digital design influences investor behaviour within AI-driven financial platforms. The research recommends the adoption of ethical notification systems and behaviour-aware user interface designs that promote informed investment decisions without encouraging compulsive monitoring.

Keywords: Robo-Advisory, Gamification, Behavioural Finance, Push Notifications, Passive Investors, Investor Behaviour, Artificial Intelligence, FinTech.