A recent study highlights that while nearly all asset managers have integrated artificial intelligence (AI) into their investment processes, only a select few are leveraging the technology for more sophisticated functions.
According to findings from Mercer Investments, approximately 91% of asset managers are currently utilizing or planning to incorporate AI into their investment strategies or asset class research. However, their application of AI is largely limited to fundamental tasks such as data analysis and idea generation. A significantly smaller fraction of firms is employing AI for advanced processes like portfolio construction or rebalancing.
This trend mirrors a broader pattern observed within the financial services sector, where the majority of AI implementations focus on enhancing productivity through tasks like data analysis, rather than on facilitating decision-making.
Mercer’s research indicates a potential shift in this landscape, revealing that 21% of the asset managers surveyed intend to introduce AI-driven investment strategies within the next twelve months.
Jo Holden, the global head of investments research at Mercer, emphasizes that transitioning from utilizing AI primarily for efficiency gains to embracing its application in more intricate areas of investment management will be crucial for AI to achieve its transformative potential.
The study was based on interviews with 150 investment managers, shedding light on current practices and future directions in AI adoption within the industry.