Slashdot Mirror

← Back to Stories (view on slashdot.org)

Financial Advisers Disrupted By AI (bloomberg.com)

Posted by yaelk on from the robot-takeover dept.

schwit1 writes: Banks are watching wealthy clients flirt with robo-advisers, and that's one reason the lenders are racing to release their own versions of the automated investing technology this year, according to a consultant. Robo-advisers, which use computer programs to provide investment advice online, typically charge less than half the fees of traditional brokerages, which cost at least 1 percent of assets under management.

5 of 71 comments (clear)

  1. And who trusts Financial "Advisors"? by Z00L00K · · Score: 3, Insightful

    And who trusts Financial "Advisors" - regardless of if they are human or AI?

    --
    If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    1. Re:And who trusts Financial "Advisors"? by AchilleTalon · · Score: 2, Insightful

      So, why aren't you wealthier than Bill Gates, Warren Buffet, Sergey Brin, Mark Zuckerberg together?

      --
      Achille Talon
      Hop!
    2. Re:And who trusts Financial "Advisors"? by suutar · · Score: 3, Insightful

      lack of seed money, most likely. After all, 3 of those 4 got rich doing something other than managing their portfolio, and Warren Buffett is at the very high end of adviser skill (based on performance) and still took a long time to get to where he is.

    3. Re:And who trusts Financial "Advisors"? by Thelasko · · Score: 5, Insightful

      And who trusts Financial "Advisors" - regardless of if they are human or AI?

      I trust Bogleheads. Financial advisers are really just salesmen.

      --
      One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
    4. Re:And who trusts Financial "Advisors"? by prefec2 · · Score: 3, Insightful

      a) you do not know if he or she is not wealthier than one of them (or if he is one of them)
      b) the listed people had different profit gaining careers which are not necessarily only based on financial trading. For example, Bill Gates started a software company and got a large loan from his parents.
      c) In a large enough group it is statistical possible that players with the same capabilities, but subjected to a random environment will end with different amounts in the end.
      d) Also if the average advisor is not better than a random generator then there still can be an advisor or player who is better than average who will earn a fortune.
      e) To get really rich, you must understand the financial market. but you also need an advantage by having a special insight in the market and most importantly politics (as politics define the rules of the game).