In Machines We Trust: Are Robo-Advisers More Trustworthy Than Human Financial Advisers?

Chia, Hui Xian

doi:10.5204/lthj.v1i0.1261

Cited by 8 publications

(9 citation statements)

References 12 publications

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“…In the past ten years, robo-advice has been a topic of increasing interest in practice and in theory, and a promising technology for the financial sector. The very definition of RAs indicates the involvement of humans as "little to none" [59] or nonexistent [60], [61]. Yet, our findings suggest that human involvement is here to stay, at least that of advisors.…”

Section: Resultsmentioning

confidence: 67%

Being Human in the Digitally Enabled Workplace: Insights From the Robo-Advice Literature

Altrock

Mention

Helge

2024

IEEE Trans. Eng. Manage.

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The growth in intelligent machines entering the workplace continues to challenge organizations' digital transformation efforts. Various applications of simple to complex algorithms allow computerized systems to take on and automate an increasing number of tasks previously undertaken by human workers. Roboadvisors (RAs) in the financial sector serve as an excellent example of technological versatility and what is to come. RAs are platforms defined by a set of algorithms that offer wealth management advice online. To understand how human workers are affected by progressively intelligent machines, this article looks at the impact of RAs on human financial advisors. Through a systematic review, we present state of the art literature and examine interactions of human and digital component. Our findings illustrate possible automation scenarios for financial advisors working with RAs, the human value added, and the skills the future workforce will require. We further suggest a future research agenda. This article adds to the digital transformation literature at the intersection of workplace automation, service provision, and human-machine interaction. The aim is to provide and provoke new ideas for successful implementation and use of intelligent machines along with skilled people in a supportive work environment.

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Section: Resultsmentioning

confidence: 67%

Being Human in the Digitally Enabled Workplace: Insights From the Robo-Advice Literature

Altrock

Mention

Helge

2024

IEEE Trans. Eng. Manage.

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“…[15]The application of artificial intelligence service in financial management, on the one hand, improves the efficiency of financial management business, on the other hand, it also helps to improve users' satisfaction with financial management services, thus improving their enthusiasm for participating in financial management. [16] Application in information security of wealth management users. After the financial management related business is completed, it is necessary to improve the user's personal information, with the aim of ensuring the security of user information.…”

Section: Case Analysismentioning

confidence: 99%

Artificial Intelligence as Personal Financial Advisor in the Future? - A Case Study Based on Algorithmic Innovation Strategies

Liu

2024

AEMPS

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This paper mainly introduces the development prospects and challenges of personal financial advisors driven by artificial intelligence (AI), as well as the advantages of combining artificial intelligence with financial management. With the rapid development of artificial intelligence technology, the personal financial consulting industry is undergoing profound changes. Through deep learning and big data analysis, taking JIMI, JD.COM as an example, it is demonstrated that artificial intelligence financial consultants can grasp the market trend more accurately and provide users with more accurate and personalized financial advice. It shows in detail that in the artificial intelligence environment, it can provide all-weather service for financial users, and users can log in to the client at any time to consult financial related issues, and artificial intelligence will restore to users. The capital market has been in a dynamic change, and there are many uncertainties in the development of the whole financial market, but investors don't know enough about financial treatment. Therefore, the application of artificial intelligence in financial management has won the favor of many financial users, and it also has a certain role in promoting the development of the capital market.

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“…Under the Corporation Act of 2001, automated financial advisors using algorithms, deep learning or machine learning must meet the same legal standards as human advisors [8]. Easterbrook and Fischel [15] and Ringe and Ruof [26] pointed out that fiduciary responsibility is the responsibility undertaken for the benefit of others.…”

Section: Body-2mentioning

confidence: 99%

“…Using the workplace as an example, this study found that financial planners must comply with fiduciary obligations to preserve clients' information and financial needs. According to Chia [8] and Degeling and Hudson [14], robo-advisory services must publish more information than human financial advisors to comply with the Corporations Act 2001 compliance. According to the Corporation Act 2001, the main obligations of financial advisors mainly include the following aspects.…”

Section: Body-2mentioning

confidence: 99%

Adoption of Robo-Advisory Service in the Personal Financial Planning Industry in Australia

Hoe¹

2023

Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)

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Everyone needs personal financial planning. The post-GFC fraud and financial crisis has resulted in confidence in financial services and professionals being at an all-time low. Financial advisors may not be affordable for everyone because of their high cost, diverse demand for financial advice, and barriers to consumers getting complete financial advice. Robo-advisory services can provide low-cost financial guidance. Robo-advisory services use artificial intelligence and algorithms to generate limited financial advice based on a client's portfolio, risk preferences, and financial goals. Robo-advisory services still have fiduciary obligation and competence concerns. This study considers regulators and service providers and then explores how ASIC guidelines facilitate the deployment of robo-advisory services in personal financial planning in Australia. This study establishes the definition of a robo-advisory services and examines its fiduciary duties, natural persons, minimum training and competency standards, and the results show that the regulations and recommendations are acceptable. At the same time, this study will explore how Australian robo-advisory service providers can help with personal financial planning. The findings indicate that service providers' product disclosure statements must be revised to facilitate robo-advisory services.

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In Machines We Trust: Are Robo-Advisers More Trustworthy Than Human Financial Advisers?

Abstract: Keywords: Robo-adviser; financial advice; artificial intelligence; deep learning; Explainable AI.

Cited by 8 publications

References 12 publications

Being Human in the Digitally Enabled Workplace: Insights From the Robo-Advice Literature

Being Human in the Digitally Enabled Workplace: Insights From the Robo-Advice Literature

Artificial Intelligence as Personal Financial Advisor in the Future? - A Case Study Based on Algorithmic Innovation Strategies

Adoption of Robo-Advisory Service in the Personal Financial Planning Industry in Australia

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