Artificial Intelligence versus Human Expertise in Wealth Management: A Comparative Study of Robo-Advisory and Traditional Financial Advisory Services

Abstract

The rapid advancement of financial technology (FinTech), artificial intelligence (AI), machine learning, and digital transformation has fundamentally reshaped the global wealth management industry. Investment advisory services, once dominated by human financial advisors, are increasingly being supplemented and, in some cases, replaced by algorithm-driven digital advisory platforms known as robo-advisors. These platforms automate portfolio construction, investment monitoring, and asset allocation through sophisticated algorithms, enabling investors to access professional wealth management services at significantly lower costs than traditional advisory models.