The Impact Of Robo-Advisors On Decision Support Management In A South African Financial Sector

Abstract

The financial sector is undergoing significant transformation due to technological advancements, particularly the rise of Robo-advisors, a subset of Artificial Intelligence (AI) that provides and enhances the efficiency of financial advisory services. This study investigates the transformative influence of robo-advisors on decision-support management in the South African financial sector, addressing pertinent challenges and opportunities. Notable findings from a comprehensive literature analysis reveal a discourse centered on applied digital skills within specific sectors such as education, accounting and health. However, there are limited discussions surrounding the challenges and opportunities of implementing robo-advisors in the South African financial sector. The study's findings reveal several key insights, including the factors influencing Robo- Advisors' acceptance (lack of trust in AI and data security), the role of digital skills in implementation, and the impact of employment within financial advisory services. These findings highlight informed decisions for effective adoption and integration of Robo- advisors in the South African financial sector, fostering efficiency, productivity and competitiveness. Future research should continue to explore the evolving role of Robo- advisors and their implications for the financial industry.