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The impact of AI-driven robo-advisors on decision-making process and personalization of investors

Falsetti, Giovanni (2025) The impact of AI-driven robo-advisors on decision-making process and personalization of investors.

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Abstract:This study examines the role of AI-driven robo-advisors in improving personalization and decision-making processes for investors in financial markets. Through a literature review, the research synthesizes findings from academic papers, case studies, and book chapters, addressing the primary research question of how robo-advisors enhance investment decision-making and personalization. The results reveal that AI personalization technologies, categorized as Mechanical AI, Thinking AI, and Feeling AI, significantly improve customer satisfaction by tailoring investment strategies to individual preferences, financial goals, and risk tolerance. Personalization positively impacts the customer journey by fostering trust and loyalty in financial services. However, ethical concerns, such as data privacy and algorithmic bias, might be present in the AI. In terms of decision-making, the study identifies used AI models which optimize portfolio management through predictive analytics and real-time adaptability. Robo-advisors proves to be efficient in investment decisions with positive results. Key findings include a 30% improvement in portfolio performance when employing genetic algorithms through advanced AI models, such as key performance indicator (KPI) predictors and hybrid systems.
Item Type:Essay (Bachelor)
Faculty:EEMCS: Electrical Engineering, Mathematics and Computer Science
Subject:54 computer science, 83 economics
Programme:Business & IT BSc (56066)
Link to this item:https://purl.utwente.nl/essays/105120
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