Over half of institutional investors in Europe/Asia not spoken about AI with asset managers

Written by Adam Cadle

10/12/2024

More than half of institutional investors in Europe and Asia have not yet spoken to any of their asset management providers about how managers are implementing AI into their businesses and investment processes, new research by Coalition Greenwich has revealed.

Broken down by region, two-thirds of institutional investors in the UK and roughly 55% of institutions in Continental Europe say they have not had any discussions about AI with their asset managers. In Asia, close to 60% of institutions have yet to broach the subject of AI with their managers.

“It’s time for institutional investors to engage on AI,” said Mark Buckley, global head of investment management at Coalition Greenwich.

“Not only do institutions have a fiduciary responsibility to keep up with changes in manager investment processes and business practices, but they also have a valuable opportunity to pick the brains of some of the smartest individuals and organisations in the industry to learn about how they are applying AI.”

On the whole, institutional investors are reasonably satisfied with asset managers’ technology implementation. Two-fifths of investors think that managers have delivered very well against expectations regarding technology enablement over the last five years. Examples of successful manager technology delivery include enhanced reporting, automation and process optimisation, and advanced analytics. Almost 80% of institutions say manager technology innovation has improved reporting and portfolio analysis capabilities.

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