Proceedings of the 1st International Conference on Artificial Intelligence, Communication, IoT, Data Engineering and Security, IACIDS 2023, 23-25 November 2023, Lavasa, Pune, India

Research Article

Redefining Financial Frontiers: Ethical Imperatives and Regulatory Dynamics in Robotic Investment Platforms

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  • @INPROCEEDINGS{10.4108/eai.23-11-2023.2343222,
        author={Manjari Sharma and Sharad Gupta and Mahesh Kumar T},
        title={Redefining Financial Frontiers: Ethical Imperatives and Regulatory Dynamics in Robotic Investment Platforms},
        proceedings={Proceedings of the 1st International Conference on Artificial Intelligence, Communication, IoT, Data Engineering and Security, IACIDS 2023, 23-25 November 2023, Lavasa, Pune, India},
        publisher={EAI},
        proceedings_a={IACIDS},
        year={2024},
        month={3},
        keywords={robo-advisors investment management portfolio construction risk management asset allocation financial regulation},
        doi={10.4108/eai.23-11-2023.2343222}
    }
    
  • Manjari Sharma
    Sharad Gupta
    Mahesh Kumar T
    Year: 2024
    Redefining Financial Frontiers: Ethical Imperatives and Regulatory Dynamics in Robotic Investment Platforms
    IACIDS
    EAI
    DOI: 10.4108/eai.23-11-2023.2343222
Manjari Sharma1,*, Sharad Gupta1, Mahesh Kumar T2
  • 1: CHRIST University, Bengaluru, India
  • 2: KPR College of Arts Science and Research Coimbatore, Tamil Nadu, India
*Contact email: manjari.sharma@christuniversity.in

Abstract

In the dynamic world of investment management, Robo-Advisors (RAs) stand as transformative elements, reshaping the financial industry. This study delves into their multifaceted impact and future prospects, leveraging financial literature to understand their integration into investment practices. RAs are recognized for their cost-effective solutions, challenging traditional advisory methods, yet their alignment with investors' goals and risk tolerances is subject to ongoing debate. This research critically examines the role of RAs in enhancing portfolio construction, risk management, and asset allocation, highlighting their potential to refine investment strategies. It also probes into the complexities of algorithmic decision-making and its effects on portfolio performance under various market conditions. Additionally, the paper navigates the evolving regulatory landscape surrounding RAs, analyzing compliance challenges and their influence on broader adoption. Overall, this study offers a comprehensive view of RAs in investment management, shedding light on their advantages, limitations, and the challenges they pose for financial professionals and investors in this rapidly evolving sector.