Asset managers to boost AI budgets by 50% as tech reshapes finance

A recent study by US fintech firm Clearwater Analytics, titled “GenAI and the Data Divide,” reveals that most global asset management companies intend to increase their artificial intelligence budgets by a minimum of 50% over the coming year. This research, which surveyed 178 senior executives from hedge funds, private credit, and institutional asset managers across Europe, the US, and Asia, highlights significant expectations regarding AI's impact. Specifically, 62% of fund managers foresee major changes in data generation and summarization, while 58% expect improvements in decision-support systems like portfolio rebalancing, and 57% anticipate advancements in predictive modeling and stress-testing. Souvik Das, Clearwater Analytics' chief technology officer, noted that AI adoption compels fund managers to rethink their data management fundamentals.