Analyzing The Factors Influencing The Adoption Of Artificial Intelligence-Based Robo-Advisory For Digital Financial Services

Abstract

Financial hardship can result from the lack offinancial planning in an adverse event. Many individuals consider financial planning and management difficult due to investment management technicalities. As a result, they consult financial advisors for assistance. Robo-advisors (RAs) have been replacing human investment advisors over the past few years due to several concerns regarding factors such as high fees, behavioural bias, and conflicts of interest. We collected 799 responses from women in the Kingdom of Saudi Arabia (KSA) to determine the factors contributing to RA adoption. The usefulness, perceived benefits, and policy interventions of RAs influence women's adoption in the KSA. Additionally, latent variables and women's adoption intentions for RAs are mediated by risk and security. It provides a comprehensive behavioural framework to explain RA's adoption by Saudi Arabian investors while considering the governing authority's policy initiatives. To resolve the obstacles, the study recommends that the government convene all relevant stakeholders' parties, research institutes, and funding organizations. It is believed that this will speed up the future development of the financial ecosystem.