Unveiling the Nexus Between Use of AI-Enabled Robo-Advisors, Behavioural Intention and Sustainable Investment Decisions Using PLS-SEM

Nargis Mohapatra, Sameer Shekhar, Rubee Singh, Shahbaz Khan, Gilberto Santos () and Sandro Carvalho
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Nargis Mohapatra: School of Economics and Commerce (KSEC), Kalinga Institute of Industrial Technology (KIIT), Deemed to be University, Bhubaneswar 751024, India
Sameer Shekhar: School of Economics and Commerce (KSEC), Kalinga Institute of Industrial Technology (KIIT), Deemed to be University, Bhubaneswar 751024, India
Rubee Singh: Institute of Business Management, GLA University, Mathura 281406, India
Shahbaz Khan: Department of Industrial Engineering, University of Tabuk, Tabuk 71491, Saudi Arabia
Gilberto Santos: Design School, Polytechnic Institute Cavado Ave, Campus do IPCA, 4750-810 Barcelos, Portugal
Sandro Carvalho: Technological School, 2Ai—Applied Artificial Intelligence Laboratory Polytechnic Institute of Cavado and Ave, 4750-810 Barcelos, Portugal

Sustainability, 2025, vol. 17, issue 9, 1-21

Abstract: The study examines the nexus between AI-driven technology, i.e., robo-advisors, and the behavioural intention of investors towards sustainable investment decisions considering government regulations and sustainable investment awareness as the moderating variables. A total of 372 responses were collected from across India through a structured questionnaire along identified variables from the TAM and UTAUT theories under the select constructs, i.e., trust, perceived risk, user-friendliness, perceived usefulness, and emotional arousal. This is with reference to the use of robo-advisors to unearth the extent to which they influence the behavioural intention and finally the sustainable investment decisions taking into account government regulations and sustainable investment awareness as the moderating variables. The results derived by using PLS-SEM reveal that all the five factors are having a significant impact on the behavioural intention for sustainable investment decisions of the investors. Further, both sustainable investment awareness and government regulations have been found to have a moderating impact on shaping the behavioural intention of the investors with respect to most of the variables. The results of the study come up with significant suggestions for the government, financial institutions, and the investors as well as the academicians, and therefore, have policy implications, managerial implications, and theoretical implications. The constructs and moderating variables considered here can further be used for studying the behavioural intentions. The robo-advisory service providers may emphasize developing the algo ensuring trust, usability, and friendly interface in a manner that tends to minimize the perceived risk and emotional arousal leading to the use of robo-advisors pushing the intention of the investors towards sustainable investment.

Keywords: robo-advisor; government regulation; sustainable investment awareness; behavioural intention; sustainable investment decision (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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