Anthropomorphized financial robo-advisors and investment advice-taking behavior

Financial robo-advisors have been used in the financial advisory service and have started to serve consumers' daily investment advice. It is unclear, however, how visual designs of robo-advisors will have spillover effects on the decisions involving high risk and uncertainty (i.e., investment advice-taking behavior). This study investigates the visually anthropomorphic designs of robo-advisors and their effects on consumers' trust and risk perceptions, as well as their investment advice-taking behavior. In particular, according to the advice response theory, we propose that an anthropomorphic robo-advisor will increase users' trust in the robo-advisor, decrease their perceived risk of financial advice, and in turn, affect users' responses towards the investment advice. The findings will contribute to the literature related to robo-advisor, advice-taking, and anthropomorphism, and proffer insightful takeaways for managers about how to use different designs of robo-advisors to improve their services and user experience.