Sixty-five per cent of investors will limit their use of robo-advice to investments of less than £1,000, according to a poll.
Fewer than 10 per cent would invest more than £5,000 based on automated financial advice, according to research from online investment site True Potential Investor (TPI).
A survey of 2,000 people UK-wide this month found only 22 per cent of investors would trust robo-advice as a full replacement for a professional financial adviser.
Aimed at DIY investors, robo-advice is designed to choose funds and spread risk on the consumers’ behalf based on algorithms, and is billed as the solution to making financial advice more accessible.
It is one of several options being considered as a way of bringing advice back to the mass market as part of the FCA and HM Treasury’s Financial Advice Market Review.
David Harrison, managing partner at True Potential, said: “Technology certainly has a big role in the future of personal financial management and advice, but we are not there yet.
“None of the technology on the market can truly be described as robo-advice, which would require very sophisticated artificial intelligence to work properly.
“Technology enables consumers to make small investments where it would not make sense to go through an adviser. Since we launched impulseSave, more than £30m has been saved by consumers in small amounts without the need for advice.”
Half of respondents to TPI’s research said they would choose both robo and face-to-face advice, depending on the size of the investment.
Toni Carver, business development and technical manager at Armstrong Watson Financial Planning, said: “There is a place for it (robo-advice) certainly in the UK but it would help at the lower end, which seems to be what the research is saying.
“It is for transactional advice rather than the strategic advice customers are looking for.”