Robo-Advising: Less AI and More XAI?

29 Pages Posted: 13 Apr 2021

See all articles by Milo Bianchi

Milo Bianchi

University of Toulouse 1 - Toulouse School of Economics (TSE)

Marie Briere

Amundi Asset Management; Paris Dauphine University; Université Libre de Bruxelles

Date Written: April 12, 2021


We start by considering some of the key reasons behind the academic and industry interest in robo-advisors. We discuss how robo-advice could potentially address some fundamental problems in investors’ decision making as well as in traditional financial advice. We then move on to some of the ongoing issues regarding the future of robo-advice. Firstly, the role Artificial Intelligence (AI) plays, and should play, in robo-advice. Secondly, how far should the personalisation of robo-advice recommendations go. Third, how trust in automated financial advice can be generated and maintained. Fourth, whether robots are perceived as complements or substitutes to human decision-making. Our conclusion outlines some thoughts on what the next generation of robo-advisors might look like. We highlight the importance of recent insights in Explainable AI and how new forms of AI applied to financial services would benefit from importing insights from economics and psychology to design effective human/robot interaction.

Keywords: Robo-Advising, Trust, Financial Inclusion, Explainable Artificial Intelligence

JEL Classification: G11; G51; G41; G23; D14

Suggested Citation

Bianchi, Milo and Briere, Marie, Robo-Advising: Less AI and More XAI? (April 12, 2021). Available at SSRN: or

Milo Bianchi (Contact Author)

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042

Marie Briere

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015

Paris Dauphine University ( email )

Université Libre de Bruxelles ( email )


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