Artificial intelligence is rapidly transforming the way Australians manage their money. From superannuation platforms using algorithms to optimise portfolios to robo-advisors offering investment recommendations in seconds, digital finance tools promise convenience, speed and lower costs.
And their growth is accelerating dramatically. The Deloitte Centre for Financial Services forecasts that generative-AI-enabled advisory tools will surge from virtually zero penetration in 2023 to 78 per cent of the retail investor market by 2028. Deloitte also predicts that financial services not incorporating generative AI – including human advisers – will decline sharply from 2026.
It’s a structural shift suggesting most Australians will soon receive financial guidance primarily from AI.
But new research from Macquarie Business School shows that while adoption is rising, consumer comfort is not.
The hidden stress behind digital convenience
The study identifies ‘technostress’, which is the psychological burden triggered by navigating complex digital systems, as a growing barrier to the use of AI-driven financial tools.
Technostress manifests in five forms: techno-overload, techno-invasion, techno-complexity, techno-insecurity and techno-uncertainty. These stressors can produce anxiety, decision fatigue, a loss of confidence and a diminished sense of control when interacting with automated advice platforms.
Complex interfaces and opaque algorithms often leave users feeling unsure, overwhelmed or sceptical about whether they understand the advice being presented.
“Unless robo-advisors tackle technostress head-on, the promise of accessible, AI-driven finance risks becoming another source of anxiety for the very people it aims to empower,” says Dr Farida Akhtar, the study’s lead author.
More responsibility, not less
Despite promises of simplicity, AI advisory platforms can unintentionally shift more responsibility onto consumers, who must interpret algorithmic recommendations without knowing how they were generated.
This can be especially taxing in emotionally charged scenarios such as market downturns, superannuation decisions, or shifts in risk tolerance, where uncertainty is already high.
“Robo-advice should not quietly push risk onto less financially or digitally literate consumers at the very moments they are most vulnerable,” says Dr Akhtar. “Sharing responsibility in high-stakes decisions is how providers build trust and enduring engagement.”
When users feel under-informed or overwhelmed, they are more likely to disengage, delay action or abandon the technology altogether.
The Australian problem
With the financial sector moving quickly toward AI-led advice and human advisors expected to decline, technostress presents a major challenge for digital inclusion.
Australia’s population is diverse in digital literacy, age, financial experience and cultural attitudes to risk. Without guardrails, AI tools may inadvertently widen existing gaps, especially for older Australians, women with less investment experience, and communities with limited digital access.
“Without strong guardrails, Australia’s move to AI-led advice could lock in today’s advice gap as a deep digital divide, leaving older Australians, less experienced women investors and communities with poor digital access furthest behind,” adds Dr Akhtar.
Designing supportive AI
The researchers argue that Australia’s next generation of robo-advisors must prioritise user-centric design, including:
- clearer explanations of how recommendations are generated
- more intuitive, less cluttered interfaces
- options for hybrid human–AI support
- features that reduce cognitive load rather than add to it
They also call for more research into how technostress interacts with trust, autonomy and long-term engagement – key factors in sustaining the shift toward AI-driven financial services.
“AI-led advice succeeds when it doesn’t overwhelm. Transparency, simplicity and human back-up are what turn robo-advisers from black boxes into trusted partners,” says Dr Akhtar.
Dr Farida Akhtar is a Senior Lecturer in the Department of Actuarial Studies and Business Analytics