A survey by the CFA Institute, a global association of investment professionals, has highlighted an industry-wide demand for standards and education on the responsible use of artificial intelligence (AI) and generative AI (GenAI) in the investment sector.
The survey, conducted in February 2024, gathered insights from 200 professionals across investment firms of varying sizes, revealing significant concerns and needs related to the adoption of AI technologies.
The survey found that 85% of employers recognise the need for industry-wide standards and ethical guidelines for AI and GenAI. Additionally, 82% of respondents believe that the absence of such standards is a significant barrier to the faster adoption of these technologies.
Data privacy and security emerged as the top concern for 16% of employers, while 13% identified a lack of knowledge and tools as a major hindrance to AI/GenAI deployment.
Workforce upskilling also emerged as a critical need, with 70% of employers indicating that training on regulatory compliance and risk management related to AI/GenAI is either preferred or essential. Despite this, 47% of respondents admitted that their organisations are not well-prepared for potential regulatory changes concerning AI and GenAI, underscoring the urgent need for educational initiatives within the industry.
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The survey also highlighted mixed feelings within the workforce towards AI/GenAI. While 68% of respondents noted that their firm’s employees are curious about AI, 60% reported a sense of anxiety, and 48% observed resistance to the adoption of these technologies.
Margaret Franklin, president and CEO, CFA Institute said: “Increasing accessibility to large language models is rapidly adding to the pace of the AI-led revolution of the investment industry. Many leading organisations have expertise with these tools, but industry-wide we see an unsettled picture. Employers tell us they need best practices, guardrails, and standardised policies to help their teams move safely into the new AI plus human intelligence era. Further, the absence of standards and concerns around data privacy may be slowing down AI adoption.”
The equation of AI + human intelligence works best, added Franklin. As a result, we see similar needs around upskilling organisations to ensure their AI-leveraged work for investors is performed both responsibly and ethically.”
