The impact of disruptive solutions in asset management

Asset managers are looking toward AI, blockchain and cloud computing -- among other technological advances -- as key drivers of change in the industry. Tech-savvy firms are establishing a competitive advantage and are prepping for disruption in online fund distribution, digital advice and micro investing, according to Deloitte's 2019 Investment Management Outlook. "Artificial intelligence has graduated from a buzzword to an enabler that offers differentiated capabilities across the investment value chain," notes the report, using as an example Morgan Stanley's predictive analysis program that helps its advisors offer more-customized advice. BlackRock's ETF suite, launched last year under its iShares Evolved brand, uses natural language processing technology to scan regulatory filings and create a proprietary index, notes the report. BlackRock, the world's largest asset manager, now uses AI capability in place of its index provider, which allows it to offer funds at a relatively lower cost.