The emergence of robo-advice has generated enormous attention in the financial services industry and growing attention from investors. At first glance, the ability to deliver some sort of advice or asset-management solution over the Internet has the makings of a game-changer--something that could drive down fees, drive out all but the most competent and well-resourced financial advisors, and improve the financial lots of a hitherto unreachable majority of individuals in need of financial planning. In a world of vanishing defined-benefit pension plans and low interest rates, robo-advice's arrival is timely. Even the least sophisticated long-term investors are increasingly aware that simply socking away money in a certificate of deposit may not be the best approach to achieve their financial goals.

However, like many issues in the financial services industry--where pursuit of novelty often trumps usefulness--the attention has focused more on the impact to current business models and less on how it might improve advice.