Explaining consumer hesitation toward digital investment via robo-advisory services: a readiness survey
Irfan Saleem, Syed Muhammad Ali Shahbaz HabibPurpose
This study investigates robo-advisors’ behavioural intention to use AI-enabled financial advice, applying the stimulus–organism–response theory in the Middle Eastern context. The study explains how perceived financial risk (PFR) and perceived security risk (PSR) could limit the adoption of robo-advisory services among customers of an oil-rich nation seeking AI-enabled digital investment advice.
Design/methodology/approach
The study used Smart PLS 4.1.1.8 for data analysis and modelling, while SPSS was used for descriptive analysis. Data from a web survey of 206 users of robo-advisor services for digital investment in the Arabic context confirmed the validity of the measurement scales and informed structural equation modelling and testing of direct and moderating hypotheses.
Findings
The results of this study reflect the perceptions of Omani respondents and show that PFR and PSR negatively influence robo-advisors’ behavioural intention to use among customers seeking AI-enabled investment advice for digital investments. The study further confirmed two boundary conditions on different paths. First, financial literacy (FL) moderates the relationship between financial risk and robo-advisor behavioural intention to use, and fear of cyber-attacks moderates the relationship between PSR and robo-advisor behavioural intention to use for Arabic customers seeking AI-enabled investment advice for digital investment.
Originality/value
Previous studies have primarily employed the Technology Acceptance Model and its universal extensions to investigate technology adoption behaviour. This research uniquely utilised the stimulus–organism–response theory to identify the key barriers to robo-advisor adoption in the Omani context, as well as the boundary conditions of FL and fear of cyberattacks.