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Artificial Intelligence in finance sector: Robo-advisors vs Traders

Artificial Intelligence in finance sector: Robo-advisors vs Traders

More investors turn to automated investing services as it is more cost-effective compared to using professional advisors. Can artificial Intelligence in finance sector substitute human guidance? 

8 December, AtoZForex  Financial Planning Association together with Investopedia have recently conducted a survey aimed at exploring investors’ preferences in regards to automated investing platforms and financial advisors. The two organizations conducted the study between August and September and asked 2,002 U.S. investors about their preferences for planning advice. The people surveyed were age 21 or older.

Artificial Intelligence in finance sector

The survey has revealed that investors want a combination of both, a “bionic” financial advisor. A “bionic” financial advisor should offer a low-cost automated investing platform and personal advice. The study has found out that 73 percent of people who use automated investing services, robo-advisors, were satisfied with their experience. At the same time, 75 percent of people working with a financial advisor were contented as well.

Investopedia CEO David Siegel commented that:

“The debate about whether robots or human advisors will win is moot. The future of financial advice is bionic — a powerful combination of both.”

Despite being satisfied using robo-advisors, 40 percent of surveyed people stated that they did not feel comfortable during periods of high market volatility.

Heart & Wallets’ research 

Other surveys also support the idea that investors want to converge the advantages of low-cost convenient technology with the safety of a human being. For instance, a recent survey by Hearts & Wallets showed that one in four people with $500,000 or above in investable assets uses both an advisor and digital tools. Laura Varas, Hearts & Wallets’ founder and CEO, comments:

“When you combine digital and live advice, consumers are happier. And they are blending digital and live advice on the high-stakes questions.”

In addition, Hearts & Wallets discovered that people prefer to combine digital recommendation and human guidance. When they select investments related to taxes and making decisions about Social Security. Since investors want more from their advisors, rather than an annual checkup.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.

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