Clearwater Analytics: AI will transform asset management operations within a year
A global study of 178 senior fund manager executives finds a decisive shift in the asset management industry: the majority of fund managers now expect AI to deliver major or transformative change across critical front, middle, and back-office functions within the next year.
The study finds 62% of fund managers expect AI to transform how firms generate and summarize data, 58% expect it to transform decision-support and portfolio recommendations, and 57% expect a transformative impact on predictive modeling and stress-testing. Adoption is accelerating alongside it: 95% of firms raised their AI budgets in the past year, and 85% plan to raise them by at least 50% more over the next 12 months.
But the study also identifies what will determine which firms actually capture that transformation. A 23-percentage-point gap exists between how firms rate the completeness of their data versus its accuracy. While 79% believe their data is complete, only 56% consider it accurate. This gap is emerging as a key differentiator between firms seeing measurable returns from their data and those still waiting for theirs to realise value.
The research reflects a significant consensus among investment professionals regarding where AI will deliver the most profound impact over the next 12 months. Leading the charge is the automation of content and data synthesis: 62% of fund managers expect AI to facilitate a major or transformative change in creating standardized written outputs and condensing complex data into concise summaries.
The industry’s reliance on predictive modeling is also set for an AI-driven overhaul. 57% of survey respondents anticipate a transformative impact on how their firms analyze historical and current data to forecast outcomes and evaluate stress-test scenarios, for example. Close behind, 58% of fund managers expect AI to revolutionize decision-support systems, specifically in proposing potential actions or parameter changes such as portfolio rebalancing based on specific objectives and constraints.
70% of fund managers surveyed say deploying AI has sharpened their focus on data management, with 8% calling the shift in attention 'dramatic'. Two thirds (66%) of fund managers now feel their AI tools are effective at managing the unique challenges of alternative data, an historically difficult area to scale.