Core Insights - US Bank has officially closed its robo advisor, Automated Investor, due to changing market conditions and customer preferences, following similar moves by UBS and JPMorgan Chase [2] - Despite the closures, the robo-advisory space is expected to continue, with certain firms likely to succeed while others may struggle to achieve significant scale [3][4] Industry Trends - The profitability of robo-advisors is challenged by high customer acquisition costs and operational maintenance, leading to thin profit margins [4] - Wealthfront, a leading robo-advisor, indicated that approximately 75% of its profits come from cash accounts, highlighting the profitability issues within the sector [4] - Robo-advisors are often viewed as loss-leaders for larger financial institutions, with the hope that clients will transition to more profitable traditional advisory services [5] Future Outlook - There is a growing demand for holistic digital tools that extend beyond traditional investment advice, suggesting a shift towards hybrid-advice models that combine digital convenience with human interaction [6] - The term "robo-advisor" may evolve as technology advances, indicating a potential transformation in how these services are defined and delivered [5][6]