An investment paradox is emerging at the heart of the asset management industry’s AI revolution, new global research from Clearwater Analytics has revealed.
The firm surveyed 178 fund managers, of which 74 were insurance asset managers, and found that one in four (25%) believe their organisation is still not investing enough in AI, but 66% said they fear their firms are already over investing.
The research said that these findings expose a fault line running through the industry: for all the conviction that AI is essential, there is no consensus on what the right level of commitment looks like in practice.
Contrary to the narrative of an industry playing catch-up, the research also revealed that AI adoption in asset management is more mature than commonly assumed. The majority of fund managers (56%) began integrating AI four to five years ago, and a further 34% started their journey two to three years back. Just 9% have begun AI integration within the past year.
The research also revealed that 43% of managers now use AI for 25–49% of their investment decision-making; 10% rely on it for the majority of their investment calls.
Furthermore, 38% apply AI to 25–49% of their risk processes; 8% use it for the majority of risk assessments. Thirty-four per cent integrate AI into 25–49% of operational decisions; 6% use AI for over half of their operational workflows.
