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Robo-Advisors Beyond Automation: Principles and Roadmap for AI-Driven Financial Planning

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  • Runhuan Feng
  • Hong Li
  • Ming Liu

Abstract

Artificial intelligence (AI) is transforming financial planning by expanding access, lowering costs, and enabling dynamic, data-driven advice. Yet without clear safeguards, digital platforms risk reproducing longstanding market inefficiencies such as information asymmetry, misaligned incentives, and systemic fragility. This paper develops a framework for responsible AI in financial planning, anchored in five principles: fiduciary duty, adaptive personalization, technical robustness, ethical and fairness constraints, and auditability. We illustrate these risks and opportunities through case studies, and extend the framework into a five-level roadmap of AI financial intermediaries. By linking technological design to economic theory, we show how AI can either amplify vulnerabilities or create more resilient, trustworthy forms of financial intermediation.

Suggested Citation

  • Runhuan Feng & Hong Li & Ming Liu, 2025. "Robo-Advisors Beyond Automation: Principles and Roadmap for AI-Driven Financial Planning," Papers 2509.09922, arXiv.org.
    • Handle: RePEc:arx:papers:2509.09922
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