The robo-advisory market has become a globally popular tool for financial institutions, growing in prominence within the financial advice industry in particular. (KPMG).  Advances in artificial intelligence (“AI”) enable robo-advice platforms to deliver personalized investment advice tailored to individuals’ diverse needs and investment preferences. Id. Robo-advisors use algorithms to automatically construct investment portfolios tailored to an individual's goals, replacing the traditional need for a human advisor to select ideal investment options. (Molly Grace, WSJ). The growth of the robo-advisory market is driven by the increasing adoption of digital wealth management platforms and the rise in financial literacy, particularly as investors turn “towards mobile-first advisory services” that support continued market momentum. (Yahoo Finance). This article will discuss the recent growth of the robo-advisory market while focusing on the increased regulatory and legal risks that may impact financial institutions.

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