This article was published in TSE science magazine, TSE Mag. It is part of the Autumn 2025 issue, dedicated to finance and money. Discover the full PDF here and email us for a printed copy or your feedback on the mag, there.
Artificial intelligence is adept at fast finance, offering cheap, personalized advice in seconds. How will algorithmic advice impact humans? The TSE co-author of a major study on human-robot investment decisions finds grounds for optimism.
What is a robo-advisor?
Robo-advisors are digital platforms that use algorithms to suggest how you should invest. They typically assess your financial literacy, risk tolerance, and investment goals using questionnaires, before proposing an optimized portfolio.
How did people respond?
They paid more attention. Robo users increased their trading activity, keeping investments more aligned with long-term goals. They also profited from a significant increase in their annual returns.
Does this mean robots should take over?
We found interaction matters more than pure automation. People don’t want to give up control – but they benefit from smart nudges, explanations, and transparent decision processes. Users can reject or adjust proposals, so it’s not a robot takeover – it’s a conversation.
Can this tech help everyone?
Financial inclusion is one of AI’s exciting promises. Robo-advisors have low fees and require minimal starting capital, so they can improve access to financial advice – especially for young or lower-income investors. But the systems must be carefully designed with clear interfaces, data protection, and smart regulation.
What are the dangers?
People may become too passive or ignore prompts when under stress. Worse, they may blindly trust advice without understanding it. AI systems can also amplify herding behavior and biases that destabilize markets. That’s why human oversight, explainable AI, and transparent guidelines are so important.
