Almost three quarters (70%) of asset managers are currently employing AI to support their front office activity, according to recently published research.
A survey from technology vendor SimCorp found a sharp acceleration in AI use among buy-side firms over the last 12 months.
In the previous year’s survey, just 15% of the canvassed firms were actively using AI, even if 75% recognised the technology’s potential.
“AI adoption has dramatically shifted from pilots to business-critical applications in the front office,” said Peter Sanderson, SimCorp CEO.
The study also looked at the criteria for selecting third-party AI vendors with vendor stability ranking as the most important as cited by 57% of respondents.
Much lower down the list was governance frameworks (40%) and regulatory compliance (35%).
AI was also seen as the technology that would provide firms with the most opportunity for technology innovation, as cited by 72% of respondents.
Another area that is increasingly seen as poised for innovation is alternative investment and private markets. The amount of people that see this sector offering the greatest opportunity for technological innovation has more than doubled over the past year – from 24% to 51%.
The survey involved 200 executives at asset managers, insurers and pension funds worldwide.
