A robo-advisor is an electronic financial advisor based on artificial intelligence. It is an expert system whose software is optimized for financial transactions. It is not a physical robot, but an Artificial Intelligence( AI) program or app with which prospective clients can communicate via desktop or smartphone.
The robo-advisor software can draw on a knowledge-based system to accept and execute securities purchases and sales. It can run simulations and optimize purchases and sales, it can handle account management, and it can bring human experience to securities trading.
Robo-advisors are of particular interest to the financial industry because they save on staff costs by using virtual advisors. Most of the time, robo-advice is sufficient for standard transactions of private individuals. Only in the case of complex investment forms does the human financial specialist have to intervene, usually with the involvement of the robo-advisor database.