Legal Risks of Applying Artificial Intelligence as Robo-advisors: International Experiences and Suggestions for Vietnam

Abstract

The rise of AI has revolutionized finance, particularly with robo-advisors, offering cost-effective, accessible, and unbiased investment advice. However, this integration presents significant legal hurdles, including liability for financial losses, data protection, algorithmic manipulation, and regulatory gaps. While some nations have established risk-mitigation regulations, Vietnam's user protection framework remains nascent. This paper analyzes the legal risks of AI in virtual financial advisory, comparing Singapore's regulatory model with Vietnam's. It proposes evidence-based policy solutions to optimize the governance and management of these advisors, thereby fostering the advancement of Vietnam's financial market within the ambit of digital transformation.