HOW AI WILL TRANSFORM INVESTMENT

“In deploying AI, firms need to assess their current technology strategies, infrastructure, governance and talent. However, early movers will benefit from the long-term strategic advantage.” KEITH PHILLIPS, EXECUTIVE DIRECTOR, THE INVESTMENT ASSOCIATION

13. WHERE IN YOUR BUSINESS WILL THE INTRODUCTION OF AI BE PRIORITISED?

Investment Operations Compliance Marketing Other

4%

4%

15%

42%

35%

(IFA) and common reporting standard (CRS) management. • Risk and portfolio management. • Business intelligence. • Investment decision support. Constraints Having asked respondents to identify areas of highest priority for the application of AI, in the next question we asked them to identify the major impediments that they face in applying AI. The most important constraint (fig 7, page 11) was a lack of maturity in the technology and a lack of existing use cases that demonstrate how this technology can be applied (26%). In all, 24% of respondent firms indicated that there was still a lack of understanding among key decision-makers or budget-holders within the firm regarding how AI will benefit

14. IN TERMS OF TIMING, WHERE ARE YOU IN THE PROCESS?

We have already started We will do so this year We will do so in the next 1-2 years This is a longer-term project This is not something we are interested in

5%

29%

38%

11%

17%

their business and bring added value to customers. A further 18% indicated the lack of a clear business case to justify investment in AI applications at this time or a fear that AI projects will fail to

deliver their targeted return on investment (ROI) within a required timeframe. Given that there is a limited track record of successful AI implementations in the funds industry, firms remain cautious

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