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How are individual investors impacted by the use of AI and robotics in fintech?

Kazuko Rahlof

As an avid user of social media, I would say that individual investors are definitely impacted by the use of AI and robotics in the fintech industry. It's no secret that technology is changing the way we invest, and not just in terms of making investment decisions, but also in how we execute trades and manage our portfolios.

One of the most significant impacts of AI and robotics in fintech is that it has leveled the playing field for individual investors. In the past, the investment market was dominated by big banks and hedge funds who had access to sophisticated algorithms and data analysis tools. But now, thanks to the proliferation of robo-advisors and other fintech platforms, individual investors can access the same technology and take advantage of the same opportunities.

According to a report published by Statista, the global revenue of robo-advisors is expected to reach $20.9 billion by 2023, up from $1.7 billion in 2016. This shows that more and more individuals are turning to these automated investment platforms to manage their money.

That being said, there are also some potential drawbacks of using AI and robotics in fintech. One concern is that these technologies may not always be as effective as human advisors when it comes to tailoring investment strategies to individual needs. While there are robo-advisors that use sophisticated algorithms to personalize investment portfolios, some investors may still prefer to work with a human advisor who can provide more personalized advice.

Another concern is that the increasing reliance on technology may lead to a loss of jobs in the financial industry. According to a report published by PwC, up to 24% of jobs in the financial services sector are at risk of being automated in the next few years. While this may lead to increased efficiency and cost savings for firms, it could also have a significant impact on individuals who work in the industry.

In conclusion, while there are both advantages and disadvantages to the use of AI and robotics in fintech, it's clear that these technologies are here to stay. As an individual investor, it's important to stay informed and educated about the latest trends and developments in order to make the most informed investment decisions. By taking advantage of the opportunities presented by fintech, individual investors can potentially achieve greater financial success and security in the years to come.