Experimental evidence on the influence of risk-taking propensity on the adoption of robo-advisors in investing.

Abstract

The purpose of the study is to determine whether people with different degrees of risk aversion and attitudes toward AI have different propensities to invest using AI. The study was conducted as an experiment among 105 business students. In exchange for answering survey questions (designed to assess attitudes toward risk and attitudes toward AI), the subjects earned extra points for course credit. Each participant in the study was given virtual money, which they were asked to invest on their own or with the help of an investment advisor or robo-advisor in instruments listed on the WSE. The obtained rate of return was converted into positive or negative points. Individuals who chose to invest less money using AI were those who did not declare taking financially risky actions too often and those characterized by higher risk aversion. No relationship was found between investing with the help of a robo-advisor and attitudes toward AI.