The classic Artificial Intelligence test was whether or not a human could discern if a concealed computer was human or not based on their responses to questions.
This was recently accomplished (click here).
For advisors, this test could also be constructed relative to a robo-advisor based on one simple question:
The robo-advisor wouldn’t preclude you from investing. It would not debate you.
In fact, the robo would ask you a series of questions beforehand to assess the extent of your investing experience (akin to a Vegas casino’s warnings about gambling).
They might tell you to not invest.
This presents an interesting dilemma.
Or, is it an enabler? A very efficient enabler.
This is important to consider in light of the fight in Washington regarding the definition of a fiduciary (click here).
If we were to truly look at the robo-advisor community we might want to shift the paradigm.
A critical eye might conclude the latter.