- A majority of surveyed global asset management firms plan to raise their artificial intelligence budgets by at least 50 per cent within the next year as the technology transforms the finance industry, a recent study showed.
- The study, titled 'GenAI and the Data Divide', drew on responses from 178 senior executives across hedge funds, private credit, and institutional asset managers located in Europe, the US and Asia.
- 62 per cent of fund managers polled said they expected transformative change in data generation and summarisation.
- 58 per cent of those surveyed said the technology would have a major effect on decision-support systems, including portfolio rebalancing.
- 57 per cent cited predictive modelling and stress-testing as areas where AI will have a significant impact.
A majority of surveyed global asset management firms plan to raise their artificial intelligence budgets by at least 50% within the next year, as the technology is set to transform the finance industry.1
According to the study, titled “GenAI and the Data Divide,” 62% of fund managers expect transformative changes in data generation and summarization.
Additionally, 58% anticipate significant impacts on decision-support systems, including portfolio rebalancing, while 57% cited predictive modeling and stress-testing as key areas of influence.
Souvik Das, chief technology officer at Clearwater Analytics, noted, “What’s striking is that AI adoption is forcing fund managers to confront the fundamentals of data management in a way nothing else has.”
The study surveyed 178 senior executives across hedge funds, private credit, and institutional asset managers in Europe, the US, and Asia.2
Wealth management leaders are also observing a rise in wealthy investors seeking financial advice from AI chatbots like Claude and ChatGPT.
Matthew Fleissig, CEO of Pathstone, remarked, “My personal opinion is that ChatGPT is the single largest investment advisor in the world right now.” However, he cautioned about the risks involved, such as receiving incorrect advice or potential data leaks.
Michael Zeuner, managing partner at WE Family Offices, expressed concerns about clients struggling to differentiate between accurate insights and errors from AI systems.
Despite these challenges, leaders believe that AI will enhance, rather than replace, traditional wealth management practices, with Lucina, chief fiduciary officer, stating, “The fact that there's more information out there is not a threat. It can take a conversation to the next level.”
“The study revealed that 62% of fund managers expect transformative changes in data generation and summarization, while 58% anticipate significant impacts on decision-support systems. Additionally, 57% cited predictive modeling and stress-testing as areas where AI will have a major effect.”
South China Morning Post
CNBC
