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Can AI evoke customers' sustainable investment preferences? A user study of Robo-advisors
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.ORCID iD: 0000-0002-2903-9158
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.ORCID iD: 0000-0003-1287-8411
KTH, School of Electrical Engineering and Computer Science (EECS), Human Centered Technology, Media Technology and Interaction Design, MID.ORCID iD: 0000-0002-0028-9030
2023 (English)In: The 2023 International Conference on Sustainability, Environment, and Social Transition in Economics and Finance (SESTEF 2023), 2023Conference paper, Oral presentation only (Refereed)
Abstract [en]

AI-empowered financial advisory services (or robo-advisory services) emerge as one of the channels to attract customers to invest in financial products that integrate the environment, social, and governance (ESG) criteria to their investment objectives. This reasoning is often based on the assumption that AI is more transparent in fees and unbiased than conventional human advisors, while at the same time, lowering the entry bar for young and low-budget customers. In automated services with little or no human intervention, users’ experience and ability to use this type of service play a critical role in supporting consumer investment decisions. However, the impact of robo-advisor user experience towards customers’ preference for sustainable investment choices has not been addressed by previous studies. In the long run, can robo-advisory services significantly support or promote a more sustainable investment portfolio to customers? We provide initial insights on these questions based on a mixed-method user test, including a pre-test survey, observations of robo-advisor usage, and a post-test retrospective interview. The preliminary results show that this AI-empowered system and its service have not fulfilled the expectations to support customers’ sustainable investment decision-making due to the lack of comprehensible information and transparency. Firstly, we explain the relationships between customers’ intention to select a sustainable portfolio with their features and attitudes towards AI. The observation and interview data reveal that a standardized definition and criteria of sustainable investment and portfolios are needed for customers to establish a fundamental understanding of this service. Also, customers demand more explanations in the final recommendation automatically generated by AI.

Place, publisher, year, edition, pages
2023.
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:kth:diva-340318OAI: oai:DiVA.org:kth-340318DiVA, id: diva2:1817760
Conference
The 2023 International Conference on Sustainability, Environment, and Social Transition in Economics and Finance (SESTEF 2023)
Note

QC 20231207

Available from: 2023-12-07 Created: 2023-12-07 Last updated: 2023-12-07Bibliographically approved

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Zhu, HuiFaradynawati, Ida Ayu AgungJääskeläinen, Petra

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