Questions about the effects of AI are fundamental to the future of the investment management industry, a critical determinant of capital allocations − and investment performance and alpha generation − globally. Yet, the magnitude of “unknowns” surrounding AI and its potential impact on investment decision-making − from stock selection and asset allocation to the modeling of risk and return − may leave investors, portfolio managers and executive teams unsure of what questions to ask.

Mercer’s survey of managers across our Global Investment Manager Database (GIMD™) combines the views of key investment decision-makers and technology leaders to build a more comprehensive snapshot of managers’ current use of AI technologies; near-term plans for advancing AI capabilities; and expectations of the potential impacts of AI on investment strategies, product developments and operations.  

With nine out of 10 managers reporting current or planned use of AI in their investment processes, the question is no longer if, but how managers are implementing AI capabilities.

Our findings reveal that use of AI across investment strategies and research has expanded far beyond the traditional ‘quant’ cohortBangalore Investment. 91% of managers are currently (54%) or planning to (37%) use AI within their investment strategy or asset class research.

While managers view AI as a driver of differentiation and competitive advantage, the ability to derive an alpha return from investment in AI – whether across investment processes or operations – will ultimately boil down to the implementation of capabilities. 

Among managers currently using AI, data quality and availability is the most-cited barrier to unlocking the technology’s full potential, followed by concerns around integration and compatibility, as well as ethical and legal considerations. The risks of divergent regulation are deemed significant by nearly half of managers.

Below are the key findings and considerations for asset managers. Download the report for the full findings.

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Questions about the effects of AI are fundamental to the future of the investment management industry, a critical determinant of capital allocations − and investment performance and alpha generation − globally. Yet, the magnitude of “unknowns” surrounding AI and its potential impact on investment decision-making − from stock selection and asset allocation to the modeling of risk and return − may leave investors, portfolio managers and executive teams unsure of what questions to ask.

Mercer’s survey of managers across our Global Investment Manager Database (GIMD™) combines the views of key investment decision-makers and technology leaders to build a more comprehensive snapshot of managers’ current use of AI technologies; near-term plans for advancing AI capabilities; and expectations of the potential impacts of AI on investment strategies, product developments and operations.Bangalore Wealth Management

With nine out of 10 managers reporting current or planned use of AI in their investment processes, the question is no longer if, but how managers are implementing AI capabilities.

Our findings reveal that use of AI across investment strategies and research has expanded far beyond the traditional ‘quant’ cohort. 91% of managers are currently (54%) or planning to (37%) use AI within their investment strategy or asset class research.

While managers view AI as a driver of differentiation and competitive advantage, the ability to derive an alpha return from investment in AI – whether across investment processes or operations – will ultimately boil down to the implementation of capabilities.

Among managers currently using AI, data quality and availability is the most-cited barrier to unlocking the technology’s full potential, followed by concerns around integration and compatibility, as well as ethical and legal considerationsLucknow Wealth Management. The risks of divergent regulation are deemed significant by nearly half of managers.Kolkata Wealth Management

Below are the key findings and considerations for asset managers. Download the report for the full findings.