What impact do you anticipate that AI will have on the funds industry and does the industry underestimate this impact?
AI will revolutionise the funds industry by enhancing efficiency, reducing costs, and improving decision-making. AI-driven analytics can process vast datasets in real time, identifying trends and risks far beyond human capability and faster. While many in the industry recognise AI’s potential, its full impact is still unclear and possibly underestimated. AI will likely reshape not only portfolio management but also risk assessment, regulatory compliance, and client engagement.
Are AI-driven portfolio managers the future of the funds industry?
AI-driven portfolio managers are poised to play a significant role in the future of the funds industry. Machine learning algorithms can optimise asset allocation, adjust strategies dynamically, and minimise human biases. However, while AI can enhance decision-making, human oversight will remain essential, particularly in volatile market conditions requiring judgement beyond known data patterns.
If there is one change in asset management that could make firms more efficient and enable them to provider better value to customers, what would it be?
One key change making asset management firms more efficient is the greater adoption of AI-powered automation in back-office operations. Streamlining compliance, reporting, and trade execution with AI would reduce costs and free up human talent for higher-value activities. This shift would enable firms to offer more personalised, cost-effective solutions, ultimately providing better value to customers. There will likely be a shortage of skilled personal, so at the end of the day, the battle will be for human talent.
Filippo Casagrande is head of investments at Generali Investments
