Quantifying Influence: A Bibliometric Analysis of Robo-Advisors in Management

1. Introduction

In contemporary times, individuals frequently utilize intelligent devices for communication and maintaining connections. Robo-advisors refer to digital platforms offering automated financial planning services driven by algorithms, typically with limited human oversight. Termed as digital platforms integrating interactive and intelligent user support functionalities, leveraging information technology to guide customers through an automated investment advisory process (Jung et al., 2018, p. 81), these platforms provide an efficient method for financial administration. The process of using robo-advisors for regular clients is quite simple. Initially, these AI-driven services assess the client's profile through an initial questionnaire, considering factors such as goals, risk tolerance, and return expectations. Afterward, they provide personalized suggestions or steps concerning investments or adjusting portfolios, mimicking the functions of a human financial advisor but working independently and utilizing artificial intelligence. Typically, a Robo-advisor gathers client information regarding their financial status and future objectives through online surveys. Subsequently, it leverages this data to provide tailored advice and automatically manage client investments (Frankenfield, 2020). In contemporary finance and management, the emergence of Robo-advisors exemplifies the fusion of technology with conventional advisory services. These algorithm-driven platforms have disrupted the landscape of investment management, offering automated, low-cost, and often personalized financial advice to investors. Robo-advisors continue to gain prominence, and understanding their impact and influence within management has become increasingly imperative (Statista, 2017).

Robo-advisors depart from traditional human advisory services by providing cost savings and 24/7 accessibility to financial information (Faubion, 2016; Park et al., 2016). The expected accessibility is poised to expand the availability of financial advisory services, allowing a wider range of people to utilize them (Sironi, 2016). Consequently, banks and financial institutions are integrating Robo-advisor services into their offerings to bolster their competitive edge. Oberhuber (2021) notes that the COVID-19 pandemic has underscored the significance of online services for investment purposes. Previously, clients who favored interactions with human advisors and perhaps still preferred visiting physical bank branches are now beginning to modify their behaviors. This shift results from banks closing their branches in response to government-enforced lockdowns. Many clients were surprised by these significant measures, leading them to explore alternative services that offer a satisfactory client experience. Consequently, they are dedicating more time to such platforms. The global Robo-Advisors market is forecasted to witness a substantial expansion in assets under management, reaching an impressive US$1,802.00 billion by 2024. Estimations indicate that the market is poised to continue its upward trend, with an expected yearly expansion of 8.06% between 2024 and 2027, resulting in an estimated total of US$2,274.00 billion by the end of 2027. Moreover, the Robo-Advisors sector is projected to garner a user community of 34.020 million by 2027. These statistics highlight the growing appeal and broad acceptance of Robo-Advisors among investors worldwide (Statista, 2023).