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...

Not yet a Member? It’s quick and free to join. Already a member? Please log in.

What's new with our live and on-demand continuing education, accreditation and certification programs.

Led by behavioural finance expert, Herman Brodie, the Behavioural Finance - Investment Decision-Making course will help you identify, analyse and evaluate the principal human preferences that influence decision-making in situations of uncertainty, so you can recognise and identify these preferences in others, to improve investment decision-making.