Robo-advisory an intrinsic convergence of ai in enhancing investment returns – An empirical analysis

Abstract

The vigor of Robo-advisory is anchored along with AI (Artificial Intelligence) to expedite, synthesize and synchronize the requisite information, an enabler in the progression of upscaling and facilitating financial intelligence and advice, to the xennials and the millennials, on their investment patterns. Innumerable times the investors usually behave irrationally in their investment decisions on selecting financial instruments, schemes or in trading, generally termed as behavioral biases. The prime target for Robo-platforms are the Millennials and the Xennials, due to affordability, 24/7 accessibility and utmost transparency with zero or nil investment bias, through a fusion model (of Robo-plus -Human) or a hybrid strategy, that can help to invigorate the investor’s investment goals. Henceforth this analytical study pertains to apply the advanced TAM (Technology Acceptance Model) on some of the significant variables such as the Perceived Usefulness, Perceived Trust, Perceived Security and the most inevitable demographic variables of the investors, administering the Structural Equation Model, that has confirmed, much remarkable user interface and the competences of AI has played a predominant role in structuring better ease- of- usage, trust and security among the investors on utilizing the Robo-Advisory Services.