The robo-advisor industry surpassed $460 billion in managed assets in 2020 and some expect it to reach $1.2 trilling in 2024. While digital advice is attractive to many investors, especially because of its cost and convenience, some see its lack of human interaction as limiting.

Jason Snipe, CIO at Odyssey Capital Advisors, pointed to the emotional response many investors had to the markets during the pandemic as a reason why there will always need to be a human element. With true roboadvisors, investors had no one to talk to.

To combat this type of concern, firms like Betterment has begun to provide hybrid options that combine digital advice and human advice. Vanguard also employs a hybrid model.

Snipe says the robo space has “room to grow” and that the industry is probably headed to a hybrid type approach.

Read the full article from CNBC.