Robo-advisors offer an attractive value proposition for mass affluent customers, combining low fees with an improved customer experience. However, they are often rules-based, rigid and rely on historical data to guide decisions. Applications of artificial intelligence (AI) like machine learning and predictive analytics could prove to be more powerful tools in automating investment decisions. The next period of heightened market volatility will be the true test of these technologies.
Beyond Robo-Advisers: How AI Could Rewire Wealth Management
Asked if a computer will ever be able to give better investment advice than a human, Oliver Bussmann does not hesitate. "I believe it's possible," said Bussmann, who until March was the chief information officer of UBS. Banks' wealth management departments and other investment firms are starting to adopt artificial intelligence.
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