Machine-Learning in Wealth Management - A Study on Investor's Preference for Artificial Intelligence in the Field of Wealth Management

Increasing use artificial intelligence in all spheres has changed the working styles of human beings giving them the ease of carrying out the activities. From travel, health, education, communication and other related fields, now you can see it entering wealth management. A vast number of companies in the wealth management sector have adopted artificial intelligence based services for their clients in order to deliver timely advice on investment, as per their convenience. These services are quickly accessible, cheaper, transparent, unbiased and accurate in terms of their data. Since these advisory services are being provided by machines, as opposed to their traditional human counterparts, they have been dubbed “Robo – advisors”. The present study gives a glimpse of the evolution of the Robo-advisory model, its features and its future potential in the wealth management sector. Primary data was collected from a random selection of 50 investors belonging to different stock holding companies in Bangalore. From the collected data, we have tried to analyse how artificial intelligence has impacted Wealth advisory management in India. Further, the study also reveals whether the investors prefer traditional advisory sources or machine-based advice in managing their portfolios, or if they prefer hybrid models. At present, though the use of machineadvisors is relatively small, it has immense potential to expand in the future. Though they require higher envestment in the initial stages,they prove to be cost effective in the long run as they save the cost of human advisors. Decision making gets easier, since it is basedon systematic and quantitative research. This paper tries to highlightthe potential of Artificial intelligence in wealth management and also discusses its present status and future prospects