Research Review: Algorithm aversion
Rob Hamshar | Portfolio Construction Forum | 13 September 2024 | 1.00 CE
Algorithmic and artificial intelligence-based (AI) systems are increasingly capable of performing tasks that have been traditionally viewed as requiring human judgement and expertise, often with superior results. The financial services industry has long embraced the potential of such systems to enhance efficiency, improve decision-making, and introduce novel solutions (e.g., robo- or digital advice). However, amidst the progress and optimism surrounding algorithms and AI, there has been mounting evidence of a phenomenon called “algorithm aversion” which is the tendency t...
