Systematic Investment Plans (SIPs) are the foundation of retail investment in Indian mutual funds. Despite thebenefits of rupee cost averaging and automated investment discipline, Systematic Investment Plans (SIPs) arefrequently paused or discontinued during periods of market volatility. This behavior is largely driven bybehavioral biases, particularly recency bias and heightened risk aversion, which led investors to overreact shortterm market downturns. This study has two primary objectives: (1) to investigate how Indian retail SIP investorsexhibit recency bias and risk-averse behavior during volatile market conditions, and (2) to evaluate the potentialof AI-based advisory solutions in mitigating these biases and promoting sustained investment discipline. Thisstudy investigates how recency bias and risk aversion manifest in Indian Systematic Investment Plan (SIP)investors and evaluates the effectiveness of AI-based advisory interventions (nudges, personalization, andsimulations) in reducing these behavioral biases. Using survey data (N=300), the study employed reliabilityanalysis, ANOVA, and regression models to examine five hypotheses. Results indicate that recency bias and riskaversion significantly undermine SIP adherence and portfolio diversification, respectively. AI interventionssuccessfully reduced these biases and enhanced trust in advisory platforms, ultimately improving adherence.Findings provide evidence for the role of AI tools in strengthening investor resilience in volatile markets.