The next frontier in investment management
The operating environment for investment management firms continues to evolve, with technological innovations and shifting investor preferences at the heart of this change. While traditional sources of differentiation in investment management are becoming increasingly commoditized, Artificial Intelligence (AI) is providing new opportunities which extend beyond cost reduction and efficient operations.
Deloitte Global’s latest report, Artificial Intelligence—The next frontier for investment management firms, focuses on four pillars for transformation which can empower firms to develop new propositions, and deliver new kinds of value. These four pillars are:
- Generating alpha: For firms seeking organic growth through outperformance, adopting alternative data sets and AI have proved to be a differentiating factor for generating additional alpha.
- Enhancing operational efficiency: Firms will continue to deploy AI and advanced automation to continuously improve the efficiency of their operations. Beyond this, firms can transform these traditional cost centers into AI-enabled “as a service” offerings.
- Improving product and content distribution: Customer experience is a new battleground and AI is helping advisors to generate more insights, customize content more effectively, and deliver it to clients with greater agility and speed.
- Managing risk: AI is a game changer for risk management. AI equips firms with the tools to bolster compliance and risk management functions, augment and automate data analysis, and anticipate and manage ambiguous events.
The report suggests that when these four pillars are augmented with AI, investment management firms can rapidly transform business models, operations, and internal capabilities. However, to fully benefit from AI, firms will need to carefully consider and manage the intersection between technology and talent.
Read this report to see how you can unlock the full potential of artificial intelligence for your business.