The results from Invesco’s eighth annual ‘Global Systematic Investing Study’ reveal a shift in the investment landscape, with half of systematic investors having already integrated artificial intelligence (AI) into their processes.
According to the study, 75% of investors predict that within the next decade, AI will be of equal or greater importance compared to traditional investment analysis methods.
Furthermore, 41% of respondents are already employing natural language processing (NLP) for sentiment analytics, with 73% expecting its future adoption.
The comprehensive study, based on the views of 130 institutional and wholesale investors managing a collective $22.5 trillion in assets, also identified a growing consensus on the benefits of systematic investing.
This approach has proven instrumental in navigating the tumultuous market conditions experienced in 2022.
Systematic investing has evolved, with investors broadening their toolkits to encompass more diverse strategies. The study found that growth has become an established factor in this evolution.
Regional variations in attitudes towards AI and NLP were significant, with investors in the Asia-Pacific (APAC) and North America more open to these technologies than their counterparts in Europe, the Middle East and Africa (Emea).
The study also highlighted the application of systematic strategies in addressing challenges related to ESG criteria, particularly in bridging data gaps. Around two-thirds of respondents utilize systematic strategies to incorporate ESG into their portfolios.
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