Asset management professionals working largely in the operational sphere see efficiency and workflow optimisation as the greatest application for artificial intelligence (AI), a recent poll at the FundsTech Forum 2025 suggests.
FundsTech Forum, the annual technology event organised by Funds Europe and now in its second year, was attended by around 85 delegates in London recently and gained insight into which technologies are considered most influential by industry actors.
Participants in the conference included Joseph Pinto, the CEO of M&G Investments, and Mike Tumilty, the global chief operating officer of Aegon Asset Management.
Some 58% of audience members that answered the poll cited operational efficiency and workflow optimisation as one way in which their organisations had applied AI. This was the most popular selection for the audience. But delegates were allowed to choose several uses and in second place with 46% came document processing and data extraction.
75% – Voting delegates that said AI was the emerging technology that would be most transformational for asset management, eclipsing other choices, such as blockchain
These two uses were far ahead of other applications for AI, which included client communication and inquiry management, regulatory data compliance and fund data analysis.
Participants were polled throughout the day on their perspectives regarding the most influential technologies, operational priorities, and transformation trends in asset management.
Artificial intelligence leads the innovation charge
When asked which emerging technologies would be most transformational for asset management, AI stood out as the clear front-runner. Garnering 75% of the vote, AI eclipsed other options such as blockchain (23%), cloud computing (27%), and big data analytics (25%). This overwhelming support for AI underscores a growing recognition of its potential to revolutionise everything from investment strategies to client servicing.
Some 37% of those that voted said they used AI routinely as part of their job and that their usage was growing. Thirty-four per cent said they used it a little and 20% said they had embraced it as much as they could. Results showed a fairly buoyant level of confidence in AI: 41% said they were highly confident in AI, while the same percentage described their confidence as average. Most (54%) felt AI would augment their role, but none said they felt AI would replace them.
Data sovereignty & security
The question on AI use cases was posed by Governance.com, who partnered with Funds Europe in the poll. Henning Swabey, chief commercial officer of Governance.com, which is a Luxembourg-based data and funds technology company, said the transmogrification of unstructured data was one of the greatest opportunities presented by AI, as long as people trusted it.
An aspect of that trust today, said Swabey, is the growing need for European companies to access non-US tech, particularly non-US or sovereign cloud solutions. Given how risk-averse the financial industry is, especially when it comes to AI, there’s strong interest in options that align with the EU AI Act and European data standards.
54% – Voting delegates who felt AI would augment their role. None said they felt AI would replace them
FundsTech delegates were asked how important data sovereignty and non-US cloud solutions are to their organisation in light of current geopolitical developments. Some 52% said this was very important – far ahead of the 19% who said it was somewhat important.
“We’re seeing rising concern over US tech dominance and the current geopolitical uncertainty,
which is increasing demand for privacy-first, resilient solutions. We believe this will soon become a major differentiator – one that future-proofs our AI development and builds long-term confidence with clients,” said Swabey. “We expect this to become a much bigger topic in the months and years ahead.”
Security concerns were the biggest reason why 31% of those who voted said there was a barrier to their organisation’s greater utilisation of SaaS/cloud solutions – although 54% of those who voted said they were fully cloud based.
Other barriers to wider SaaS/cloud adoption included legacy system dependencies (15%) and lack of skilled talent or cost considerations (both 12%).
“Together with many of the panellists and subject matter experts I was surprised to hear that respondents stated that they were fully cloud based, in our experience that is usually not the case and I’ve even visited Big 4 offices where staff are urged to ‘upgrade to Microsoft 11’,” said Swabey.
Fragmented opinions reflect evolving landscape
Elsewhere during the day, FundsTech asked delegates which area of asset management is most likely to be transformed in the coming years. Fund distribution and investor engagement emerged as the top choice, receiving 50% of the vote. This was followed by operations and fund administration (33%), and portfolio and risk management (27%).
Despite the attention given to tokenisation, this only received a modest vote share (23%) in the poll
on transformational technologies. While tokenisation is seen as a potentially game-changing innovation – offering fractional ownership, instant settlement, and greater accessibility – the relatively low support might indicate that many view it as still being in the experimental or developmental stage.
One notable observation from the polling results is the fragmentation of opinion on several topics. For example, while AI had a clear lead,
other technologies still received notable support. Likewise, although investor engagement topped the transformation list, substantial votes went to operational and investment-related functions.
This fragmentation could reflect an industry in flux. There is no singular path to transformation; rather, firms are navigating a web of evolving priorities, driven by firm size, client base, and digital maturity. The diversity of opinion suggests that while there are consensus areas, a one-size-fits-all approach to innovation is unlikely.
Joseph Pinto, M&G Investments CEO interview at FundsTech Forum
What the results mean for strategy
If these poll results offer more than just a snapshot of industry sentiment, but in fact also present a call to action, then what might that be? The clear enthusiasm for AI and digital client engagement should inform technology roadmaps and investment strategies. At the same time, the moderate but growing interest in blockchain and tokenisation should encourage firms to experiment and pilot solutions, keeping pace with regulatory developments.
Leaders should also take note of the nuanced views on transformation across the value chain. Firms that succeed will be those that can integrate innovation holistically – combining client experience enhancements with back-office efficiency and data-driven investment strategies.
52% – Voting delegates who said data sovereignty and non-US cloud solutions are “very important” to their organisation in light of current geopolitical developments
In conclusion, FundsTech Forum 2025 reflected a shift in asset management, where the integration of AI is not only enhancing operational efficiency but also bringing data sovereignty and SaaS security to the forefront of industry priorities. As firms increasingly rely on AI for tasks like document processing and data extraction, the importance of controlling data within sovereign boundaries has become paramount. This is especially critical in the context of the EU AI Act and GDPR, which emphasise the need for compliance with European data standards.
However, the transition to cloud-based solutions is not without challenges. Security concerns remain a significant barrier, as seen through the 31% of respondents who cited security as a primary obstacle to greater SaaS adoption. This is compounded by the complexities of managing third-party integrations and configurations, which can introduce vulnerabilities if not properly audited and secured. The World Economic Forum emphasised the necessity of comprehensive SaaS security strategies, including strong identity security and integration auditing, to mitigate these risks.
As the asset management industry continues to evolve, balancing the innovative potential of AI with the imperatives of data sovereignty and robust security measures will be crucial. Firms that proactively address these areas are likely to build greater trust with clients and regulators, ensuring sustainable growth in an increasingly digital landscape.
FundsTech Forum 2025: Tokenisation sparks urgency in asset management
