Why robo-advisers need artificial stupidity

Smarter algorithms can’t stop us making bad investment decisions – yet, writes Andrew Lo

Robo advisers currently lack a sense of ‘artificial stupidity’

‘Fintech’ is transforming the financial sector at a pace that is now obvious even to the casual observer. We see this not only in daily headlines about initial coin offerings or financial applications of blockchain technology, but also in the daily experiences of the average consumer: paper cheques consigned forever to desk drawers, automatic currency conversions on a trip abroad, the rapid approval of an online loan – and most excitingly for some, personal investing now done entirely via