Wednesday, 18 February 2026
AI-driven robo-advisors are expanding at a pace that, a decade ago, appeared unrealistic. Some market forecasts estimate the sector could reach a value of $3.2 trillion by 2033. Behind the promise of automation and low costs, however, remain questions that beginner investors may not know to ask — and that wealthier clients should not ignore, including algorithm transparency, data security and the limits of standardised advice. The central issue is when technology supports investment decisions and when it begins to replace them.
Robo-advisory platforms are increasingly viewed as a natural entry point for younger investors, particularly those with limited starting capital and straightforward financial goals. At the same time, critics note that new investors often lack the experience to identify what they should question, while decision-making algorithms can function as a “black box,” making portfolio behaviour difficult to interpret. Some experts also argue that the usefulness of fully automated solutions diminishes once assets exceed approximately PLN 100,000 or financial circumstances become more complex.
Democratisation of Investing
Platforms including Betterment, Ellevest, Wealthfront, Vanguard and Charles Schwab have reshaped access to investment services by offering automated portfolio management at a fraction of the cost of traditional advisory fees. Many allow accounts to be opened within minutes via mobile applications and often do not impose minimum investment thresholds.
“We are seeing a clear trend: younger investors, especially millennials and Generation Z, treat robo-advisors as a natural starting point. It’s a rational approach. With a small starter capital and simple investment goals, the algorithm will work perfectly. Automatic collection of tax losses, rebalancing of the wallet – these functions work without emotion and without interruption,” comments Radosław Jodko, investment expert for the RRJ Group.
The Black Box of the Algorithm
Despite the efficiency gains, specialists caution that enthusiasm for technology should not obscure its limitations. A recurring concern is the limited transparency of proprietary decision systems used by many platforms.
“The biggest problem is that decision algorithms remain non-public, making it difficult to understand why certain positions in the portfolio behave in a given way. Walking the trend wisely means knowing its boundaries. The Robo-Adviser will answer the questions you ask him. The problem is that a beginner investor often does not know what questions he should ask. Standardised risk questionnaires will not replace the conversation in which the advisor inquires about the life context, family plans or the specifics of remuneration,” explains Radosław Jodko.
The Digital Advisory Risk
As platforms scale, data-protection concerns are also increasing. Terms of service accepted with a single click may include provisions allowing data sharing with business partners or affiliates.
“In the world, we have seen one of the genetic companies whose database went to auction after bankruptcy. This shows that sensitive information can change the owner in a way that is difficult to predict,” Jodko notes.
“The investor should treat his financial data with the same caution as medical data. Therefore, it is absolutely worth reading the privacy policy before choosing the platform and checking who owns the operator,” he advises.
When the Algorithm Is Not Enough
Financial planning extends beyond portfolio construction and includes insurance coverage, inheritance structures, tax optimisation and education funding. Major life events such as marriage, divorce, childbirth or job loss often require flexible, individualised planning that automated tools may struggle to accommodate.
“A robot-advisor is an excellent tool, but a tool, not a strategist. For an investor with capital of less than 100 thousand zlotys and simple goals it will be sufficient. However, when the situation becomes complicated and the stakes increase, it is worth considering a hybrid approach: an algorithm for everyday management, a person for strategic decisions. This is not an ‘either-or’ question, but ‘when what,’” emphasises Jodko.
“I have no doubt that the market for robo-advisors will grow. The question is whether investors will learn to use it wisely, treating technology as support, not replacing their own financial education.”
The situation differs for investors making regular deposits of several hundred thousand zlotys per month. In this segment, automated advisory tools typically become only one component of a broader financial strategy.
“With regular deposits exceeding 200–300 thousand zlotys per month, we enter an area where standard algorithms simply do not keep up with the complexity of the situation. Especially when we talk about structuring assets between jurisdictions, tax optimisation at the international level, securing company assets or planning succession in the generational perspective,” explains Radosław Jodko.
Wealthier investors often require access to alternative asset classes such as private equity, hedge funds or commercial real estate, as well as coordinated advisory teams.
“Paradoxically, the larger the wealth, the greater the value of the human counselor. It is not only about financial knowledge, but about the network of contacts, access to off-market transactions and the ability to coordinate a team of specialists: lawyers, tax advisors, family office. The algorithm will not offer this,” adds Jodko.
