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  7. Lecture by Prof. Dr. Fabian Herweg, University Bayreuth, at the BERG Research Seminar on the 19th of May

Lecture by Prof. Dr. Fabian Herweg, University Bayreuth, at the BERG Research Seminar on the 19th of May

We are pleased to announce that Prof. Dr. Fabian Herweg, University Bayreuth, will give a lecture within the BERG-Research Seminar on the topic of

AI Persuasion and Financial-Decision Making: Experimental Evidence on Dominated Investment Choices
(joint work with Joshua Greubel und Henrik Guhling)

The date is Tuesday, 19th of May, 3 p.m., in room F21/01.30.

Abstract

This study examines how AI-generated financial advice influences investment decisions in situations where individuals choose between two fictitious fund providers, one objectively optimal and one dominated. In a controlled online experiment, participants received either no advice, advice from a human advisor, or AI-generated recommendations presented either neutrally or as originating from the investor’s bank. The results reveal substantial persuasive effects of both human and AI advice. Biased recommendations favoring the dominated option significantly reduced optimal investment choices, particularly when delivered by AI systems. In contrast, advice supporting the optimal provider strongly increased correct decisions, with AI-based recommendations producing the highest rates of optimal choices. Notably, framing AI advice as originating from a bank did not reduce trust in the AI advisor. The findings highlight the powerful influence of AI persuasion in financial decision-making and raise concerns about the potential misuse of AI-driven recommendations in retail investment markets.