AI will support rather than replace in the investment industry

by | Sep 7, 2023

CFA Institute has launched new flagship research on the Future State of the Investment Industry today which looks at how AI will impact the investment industry in the next 5-10 years.

The report outlined that AI, machine learning, and big data are helping the industry shift from being technology supported to technology driven, and are likely to expand the workflow capacity of investment professionals, as opposed to replacing them.

The report found that:

  • 9 in 10 (91%) of those whose firms have implemented AI and big data into their core business operations say it has helped their firm
  • 45% of investment professionals say AI and big data has helped their firm by allowing staff to use time more productively by automating repetitive activities, compared to 22% who have reduced their headcount by using AI to automate repetitive activities
  • Only 26% of investment professionals say their organisation has been routinely using AI and big data in decision making

Rhodri Preece, Senior Head of Research at CFA Institute, and co-author of the report comments: 

“As the investment industry undergoes a significant shift from being technology supported to technology driven, it needs to understand the opportunities brought about by new technologies and data, and identify where and how to best deploy these advances. The firms and professionals that best align AI with human intelligence and capitalise on techno­logical innovation to increase productivity and expand individual and firm capabili­ties will lead the industry.”

The research, which has been released in line with the launch of the new CFA Institute Research and Policy Center, uses insights from 3,000 investment professionals to put forward four narratives that will shape the future of the investment sector: Diverging Worlds, Sustainable Finance, Digital Transformation (AI), and The End of Cheap Money.

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