Asset managers are integrating artificial intelligence ( AI) into investment operations, but they continue to use the technology mainly to support rather than replace human decision-making, according to a report from consulting firm Mercer.
The report, based on a survey of global asset managers, found that 55% of respondents had integrated AI into at least one investment process, while 27% were running pilot programmes or proof-of-concept projects. 18% said they had not yet adopted AI within investment processes.
73% of firms use AI to automate routine tasks and improve team productivity, while 68% use it to support investment analysis and insight generation. About 5% of surveyed firms currently allow AI autonomous or semi-autonomous authority for investment recommendations or trades.
Around 69% of firms reported improved operational efficiency, while 55% cited faster or higher-quality insights. About 8% reported measurable improvements in investment returns or reduced portfolio volatility from AI implementation.
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Data quality, access issues and regulatory uncertainty continue to slow broader adoption, the survey found. Nearly 70% of respondents cited data-related challenges as a material barrier, while 59% highlighted compliance and regulatory concerns.
“AI is delivering measurable efficiency and insight for asset managers today, but the technology is largely a partner rather than a decision-maker,” said Beverley Sharp, Mercer’s global manager research leader. “Addressing data, regulatory, and integration challenges will be essential to realise AI’s broader potential in portfolio construction and execution. Our survey finds AI is mainly being used upstream for idea generation and research in the asset management industry.”
