According to a report by Linedata, over the next year, 37% of asset management companies plan to expand their use of artificial intelligence (AI), while 22% aim to increase experimentation, and 28% will focus on monitoring progress. Jamil Jiva, Global Head of Asset Management at Linedata, stated that AI adoption in asset management is accelerating as more companies invest in this technology to remain competitive and explore new use cases. The report also revealed that currently, 32% of asset management firms have not yet started their AI journey, while 33% are in the experimentation phase, and 36% actively use AI. Among those actively using AI, 14% have multiple use cases in production and plan further implementations. The most popular applications of Generative AI (GenAI) include document synthesis (28%), data extraction (28%), and knowledge bases/Q&A (17%).

Additionally, Generative AI plays a crucial role in enhancing front office productivity, optimizing transaction efficiency (23%), generating transaction research or yields (18%), and boosting middle and back-office operations' productivity (19%). The report also highlights challenges faced by asset managers, such as data quality and updates, understanding costs, developing business cases, and availability of AI expertise. Furthermore, it notes that companies prefer a hybrid approach, combining internal resources with external partnerships, to address these challenges and tightly control their AI capabilities. Data lakes are being developed by many asset managers to ensure reliable, consistent, safe, and easily accessible data for efficient training of Large Language Models (LLMs). The survey involved nearly 100 fund and asset managers globally, and data was collected via an online questionnaire and in-depth interviews conducted during the first quarter of 2024.