Fund Management Expected To Be Completely Changed By AI – In The Next 12 Months

Fund and asset management is expected to be completely changed by artificial intelligence (AI). What is interesting, though, is the rapidity of this change, as it is predicted to undergo a transformation in the next 12 months.

ClearWater Analytics anticipates that the entire fund management stack will be completely different. ClearWater Analytics is a natively agentic investment management platform.

A survey conducted by ClearWater claims that AI adoption is accelerating and 95% of firms have raised their AI budgets in the past year, and 85% plan to raise them by at least 50% more over the next 12 months.

• 62% of fund managers expect AI to transform how firms generate and summarize data.
• 58% expect it to transform decision-support and portfolio recommendations.
• 57% expect a transformative impact on predictive modeling and stress-testing.
• 73% of fund managers surveyed describe their use of AI natural language agents as “effective” for querying data-intensive investment platforms, risk management, and reconciliation.
• 62% of respondents find AI agents effective for delving into complex topics such as regulatory compliance, with 47% describing these tools as “very effective.”
• 63% of managers are successfully using AI to automate repetitive workflows such as daily report generation.
• 62% of firms report success in using AI to trigger operations based on specific data thresholds or schedules, displaying a move toward more sophisticated, autonomous system behaviors.
• 70% of fund managers surveyed say deploying AI has sharpened their focus on data management, with 8% calling the shift in attention “dramatic.”

Souvik Das, CTO of Clearwater Analytics, says the investment community is no longer just curious about AI as they are deploying it to solve aspects of asset management. Firms are said to be “reclaiming thousands of hours,” which are now deployed to drive improved outcomes.

“The confidence we see in managing alternative data is particularly telling. It suggests that firms that invest in AI are also the ones investing hardest in getting their data right, and that the two have to move together. This is a fundamental shift in the industry’s awareness of complexity.”

One divergent aspect of the survey indicates there is disparity between leaders and laggards as a minority, between 12% and 18%, of fund managers expect little or minor impact from AI.