Artificial Intelligence (AI) has generated a lot of hype lately with AlphaGo defeating Chinese Go master. In the world of finance, perhaps the most widely known application of AI (at least to the public) is robo-advisory.
Generally, a robo-advisor aims to construct an investment portfolio that meets an investor’s financial goals in an automated fashion. The advisory services industry in the US is undergoing significant transformation in the way it is becoming more customized. Thus, robo-advisors have been growing rapidly and leading new players like Betterment is capturing total Assets Under Management (AUM) that exceeds US$7 billion. The incumbents are also rolling out their digital platforms.