Will AI make active managers prove their worth? » Banking Technology

Research released late last year suggested that almost two thirds (62%) of a survey of 90 German institutional investors predict greater usage of artificial intelligence (AI) for short-term decision-making, and 17% for medium-term investment decisions. Universal Investments, the asset manager behind the research, said that "the industry's future thus certainly appears to be closely linked with the strategic use of AI". Of course, "greater usage" could be a marginal rise, but I think that an increase in the use of AI is almost inevitable. It's certainly true that the cost of investment management that can be done by a machine has reduced, to the extent that human active managers now need to really deliver value. AI is also not purely the domain of the passive fund; active managers will increasingly deploy these tools to supplement and support their decision support.