Wealth and asset managers adopt AI for research, efficiency and risk management
Updated
Updated · Financial Times · May 4
Wealth and asset managers adopt AI for research, efficiency and risk management
11 articles · Updated · Financial Times · May 4
St James’s Place says AI cuts advisers’ paperwork and data-entry workload by about a fifth across its 5,000 advisers, after February’s Altruist launch briefly hit sector shares.
Janus Henderson and Wellington Management are using AI to analyse meetings, support due diligence, suggest trading ideas and improve real-time portfolio risk monitoring, while keeping humans responsible for investment decisions.
Surveys show adoption is accelerating: SimCorp says 70% of buy-side firms now use AI, up from 10% exploring it last year, while 79% of investors use it for research and 77% for risk management.
With most firms seeing no AI profits yet, is the massive $3 trillion bet on AI infrastructure a looming bubble?
When an investment AI inevitably fails, will human overseers just become 'liability sponges' for systemic technological errors?
As AI automates junior roles, how will finance cultivate tomorrow's leaders without the foundational experience those jobs once provided?
Harnessing AI for Alpha in 2026: Strategies, Risks, and Regulatory Challenges in Hedge Funds
Overview
In 2026, markets face increased volatility and dispersion driven by inflation, geopolitical tensions, and divergent central bank policies. Hedge funds leveraging AI are well-positioned to thrive by using advanced quantitative tactics that analyze vast data to identify opportunities and manage risks, especially in dynamic regions like Asia-Pacific. AI integration is transforming investment workflows, enhancing decision-making and operational efficiency through human-AI collaboration. Despite these advantages, challenges remain, including data quality issues, complex governance, cybersecurity threats, and a shortage of skilled talent. Meanwhile, regulatory efforts focus on managing AI-driven risks and promoting innovations like fund tokenization, shaping a rapidly evolving investment landscape.