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Human-Robot Interactions in Investment Decisions

Author

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  • Milo Bianchi

    (Toulouse School of Economics, 31000 Toulouse, France; and Toulouse School of Management (TSM), University of Toulouse Capitole, 31000 Toulouse, France; and Institut Universitaire de France, 75231 Paris, France)

  • Marie Brière

    (Amundi, 75015 Paris, France; and Paris Dauphine University, 75016 Paris, France; and Université Libre de Bruxelles, 1050 Bruxelles, Belgium)

Abstract

We study the introduction of robo-advising on a large set of employee saving plans. Different from many services that fully automate portfolio decisions, our robo-advisor proposes investment and rebalancing strategies, leaving investors free to follow or ignore them. The resulting human-robot interactions occur both at the time of the subscription and over time, as the robot sends alerts when the investor’s portfolio gets too far from the target allocation. We show that the robo-service is associated with an increase in investors’ attention and trading activities. Following the robot’s alerts, investors change their rebalancing behaviors so as to stay closer to their target allocation, which results in larger portfolio returns. Counterfactual returns induced by automatic rebalancing by the robot would be only slightly higher, suggesting that, on average, the financial cost of letting investors retain control is not large.

Suggested Citation

  • Milo Bianchi & Marie Brière, 2026. "Human-Robot Interactions in Investment Decisions," Management Science, INFORMS, vol. 72(1), pages 14-31, January.
    • Handle: RePEc:inm:ormnsc:v:72:y:2026:i:1:p:14-31
    DOI: 10.1287/mnsc.2022.03886
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