How likely are consumers to adopt artificial intelligence for banking advice?

A new study published in Economic Inquiry is the first to assess the willingness of consumers to adopt advisory services in the banking sector that are based on artificial intelligence (AI). Investigators examined whether the likelihood that consumers adopt AI in banking services depends on tastes for human interaction across different cultures. The study focused on robo-advisory services, which are automated investment platforms that provide investment advice without the intervention of a human advisor. When investigators analyzed an ING Bank dataset encompassing 11,000 respondents from 11 countries, they found that different attitudes across cultures shape differences in local consumers' likelihood of adopting robo-advisory services. The analysis revealed that robo-advisory services may be adopted where they compensate for feelings of a lack of trust and reliability towards human advisors among consumers.