Investor Trust in Robo-Advisors: The Impact of Perceived Risk, Control, and AI Predictive Capability

Dublin Core

Title

Investor Trust in Robo-Advisors: The Impact of Perceived Risk, Control, and AI Predictive Capability

Creator

Fahrul Riza, Yuli Kartika Dewi, Yoseva Maria Pujirahayu Sumaji, Teofilus, Luh Karenina Savitri Masna

Proceedings Item Type Metadata

meta_title

Investor Trust in Robo-Advisors: The Impact of Perceived Risk, Control, and AI Predictive Capability

Abstract/Description

This research investigates how perceived risks to data security and perceived control influence investors' trust in robo-advisors, as well as the impact of this trust on their adoption decisions. It also examined the moderating effect of the predictive advantage of machine learning. Employing a quantitative analysis method with Partial Least Squares Structural Equation Modeling (PLS-SEM), data were gathered from investors who are familiar with robo-advisors. The results indicate that perceived data security risk diminishes trust, whereas perceived control enhances trust. However, trust alone does not directly result in adoption, implying that other elements such as ease of use and economic benefits might be influential. The predictive advantage of machine learning enhances the link between trust and adoption but does not directly affect adoption decisions. Providers of robo-advisors should focus on improving algorithm transparency, bolstering data security systems, and offering features that enhance users' perceived control. Effective communication AI's predictive advantages of AI is also essential for building investor trust and alleviating security concerns.

publication_date

2025/06/15

pdf_url

https://insyma.org/proceedings/files/articles/Fahrul_Riza.pdf

abstract_html_url

https://insyma.org/proceedings/items/show/369

keywords

Perceived Risk, Perceived Control, AI Predictive Capability, Investor Trust, Robo-Advisors

firstpage

345

lastpage

352

issn

3047-857X

conference

Proceedings of the International Symposium on Management (INSYMA)

Volume

22

publisher_name

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Author #1

Fahrul Riza

Author #2

Yuli Kartika Dewi

Author #3

Yoseva Maria Pujirahayu Sumaji

Author #4

Teofilus

Author #5

Luh Karenina Savitri Masna

no article

58

authors

Fahrul Riza, Yuli Kartika Dewi, Yoseva Maria Pujirahayu Sumaji, Teofilus, Luh Karenina Savitri Masna

Files

Fahrul_Riza.pdf

Citation

Fahrul Riza, Yuli Kartika Dewi, Yoseva Maria Pujirahayu Sumaji, Teofilus, Luh Karenina Savitri Masna, “Investor Trust in Robo-Advisors: The Impact of Perceived Risk, Control, and AI Predictive Capability,” Proceedings of the International Symposium on Management (INSYMA), accessed July 1, 2025, https://insyma.org/proceedings/items/show/369.

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