Decisive strides in AI’s progress and the burst of enthusiasm around Generative AI have stoked the buzz around this technology’s transformative potential.
Global Fund Media, in partnership with Linedata, surveyed over 100 fund managers at hedge funds, private equity, and institutional organizations to understand the role AI is playing in their current and future plans.
Their responses, and insights from industry experts, are captured in the new research report Intelligent alpha: Advanced AI’s impact on alternative asset management.
Are you keeping pace with your industry peers?
Among the report's findings:
-
44% of GPs surveyed already use AI in operations, with another 42% saying implementation is ongoing or imminent
-
Hedge funds are focusing on AI to enhance investment decision making; PE firms are also keen to reap operational efficiency benefits
-
Integration challenges, lack of internal expertise, and concerns about data privacy and security are top implementation challenges
-
44% of respondents are taking a ‘buy AND build’ approach while 39% are relying on internal expertise
-
96% expressed enthusiasm about Generative AI and its impact on operations
Get expert analysis on AI adoption trends in asset management
“What’s exciting is that Gen AI speaks human language, which removes major friction points from asset managers’ interaction with data. It speeds up research, can analyse and summarize data, responds to specific queries, and enables a more personalized approach to client communications,” says Gary Brackenridge, Global Head of Strategy, Linedata.
Ashmita Gupta, Global Head of Analytics at Linedata, says firms face complex choices around technology. “Once the right model has been selected, limitations in the tech in its current form become another source of frustration – AI models can hallucinate if they’re not given the right context, which is a worrying outcome for fund managers. The promising fact is that these models are developing so rapidly that new quirks are being ironed out from one day to the next.”
According to Anup Kumar, Head of Linedata Global Services, PE firms’ priorities reflect market conditions. “With high interest rates and a dearth of good deals on the market, it’s more crucial than ever for PE firms to be able to monitor the underlying portfolio companies, particularly if they’re extensively leveraged. Wider spikes in private credit activity also call for better monitoring capabilities, as firms have a higher volume of bespoke deals to underwrite and track.”
With AI on (nearly) everyone’s agenda, don’t miss out on what your peers are saying – and doing. Download the report to learn how AI/ML and Generative AI are reshaping the alternative asset management landscape.