Despite widespread discussion of its transformative abilities, the asset management’s adoption of AI remains limited and uneven, according to recently published research.
A report from management company Carne Group found that fewer than one in five asset managers (18%) are deploying AI for core operations with the majority of applications focused on marketing (42%) risk management (36%) and RFP processes (34%).
The majority (60%) of asset managers also admitted to underinvesting in AI for fund launches with poor data quality and tight budgets cited as the major barriers.
This is despite the fact that 60% of asset managers also believe they must accelerate fund launches to remain competitive.
A lack of competitiveness is a key issue raised in the report which cites the so-called 600 day imperative coined by McKinsey which states that companies have a critical 600-day window to become AI-centric or risk failure in a world of generative AI.
According to Carne, too many asset managers are stuck in ‘pilot mode’ and now face a race to move from proof-of-concept to enterprise-scale deployment.
Siobhan Noble, chief data and AI officer at Carne Group, states that the report, Supermodel 2025: The Rise of the Complexity Curve, should serve as a wake-up call for the industry.
“Asset managers are talking a big game on AI, but the sector is still waiting for true transformation.”
The report makes a number of recommendations, including securing board level sponsorship, centralising data management and focusing on ROI rather than hype.
“The countdown is on. With just 18–24 months to move from proof-of-concept pilots to enterprise-scale AI, asset managers face a defining moment.
“In a market where speed, personalisation, and data-driven insights are fast becoming the price of entry, the next two years will determine who leads, and who risks irrelevance”, stated Noble.
The survey canvassed 200 senior executives at global asset managers.
