Technology and AI implementation are becoming a much larger priority for asset managers, as their contribution to investment outcomes is set to increase.
According to research by the MSCI Institute and the Thinking Ahead Institute, which surveyed 20 global asset owners, participants expect technology’s contribution to investment outcomes to rise 13% over the next three to five years.
The survey also found that successfully integrating AI had become the top priority for 67% of respondents, above adapting to higher inflation, managing liquidity or the changing roles of private markets.
That said, the report also found a gap between industries’ ambitions for AI and its current capabilities, with 25% of respondents having already made AI part of their investment agenda. Some three-quarters of respondents also pointed to data quality and a lack of standardisation as significant roadblocks to AI implementation.
Looking forward, asset owners should focus on leadership and governance, skills and talent, operating models and costs to support the transition to AI, the report said.
Roger Urwin, co-founder of the Thinking Ahead Institute, said: “Technology’s influence on asset owner outcomes is set to increase substantially, but this is not simply about installing more tools.
“AI is changing how investment organisations’ structures work, make decisions and govern risk.”
Linda-Eling Lee, founding director and head of the MSCI Institute, added: “AI gives asset owners an opportunity to rethink not just how they use technology but the investment process itself.
“Data will be central to that transition, but so will human judgement, governance and the ability to connect investment and technology teams.”
See also: JTC Group’s Habraken: The impact of AI on fund administration
