Does a robot manage your money? For many of us, the answer is yes. Online and algorithmic investment and financial advice is easy to come by these days, usually under the moniker of “robo-advisor.” Startups such as Wealthfront, Personal Capital, and Betterment launched robo-advisors as industry disruptors, and incumbents, such as Schwab’s (Intelligent Advisor), Vanguard (Personal Advisor Services), Morgan Stanley and BlackRock have joined the fray with their own hybrid machine/advisor solutions. It’s clear that robo-advisors and AI play an important and growing role in the financial services industry, but a question remains. Will robo-advisors disrupt corporate capital allocation the same way they have personal capital allocation? And, will they shake up the trillion-dollar corporate consulting and advisory industry?
Robo-Advisers Are Coming to Consulting and Corporate Strategy
AI-guided decision making isn’t just for investing.
January 12, 2018
Summary.
If AI-guided investing can work for a person, can it also work for a company? Corporations buy and employ human advice from many wise advisors—consultants, lawyers, investment bankers—in the same fashion that investors did in the past. Corporate strategy is complex, and the advice is expensive. However, the approaches advisors take are usually data-driven and guided by previous experiences. This is just the sort of problem that can benefit from machine intelligence.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Digital Intelligence . Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Excel in a world that's being continually transformed by technology.