Gill Wadsworth talked to SimCorp this week about their research which shows that 70 per cent of institutional buyside organisations are using AI to support their front office operations, compared with just 10 per cent last year.
And as the technology becomes more entrenched in their core businesses, fund managers, insurers and pension funds are prioritising vendor stability, Wadsworth writes.
When asked to rank the most important factors when evaluating AI solutions for investment management, 57 per cent say vendor stability; 54 per cent say innovation access; and 47 per cent say analytical flexibility.
Julia Cloud, Global Investment Management Leader at Deloitte Global, says: “Evaluation of AI vendors is increasingly about enablement and proving capability, not merely managing a procurement process. Many firms want innovation and analytical flexibility up front, with vendor stability as the necessary underpinning.”
And hot on the heels of that report, a survey from Royal Bank of Scotland International (RBSi) has found that 71 per cent of alternative investment funds see digital transformation as their greatest operational challenge.
The report, based on a survey of 100 alternative investment funds, underscores that while digital technology is seen as the key to meeting automation, compliance, and cybersecurity objectives, the path forward presents a range of obstacles.
Funds see productivity gains in AI and security benefits in blockchain and tokenisation, yet respondents identified regulatory uncertainty (71 per cent), privacy and security concerns (50 per cent), and a lack of industry consensus on platforms and standards (61 per cent), as top barriers to innovation.
Beverly Chandler, Managing Editor, Institutional Asset Manager
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