AI Revolution in Investment Management: How Two-Thirds of Firms Embrace Technology

AI Revolution in Investment Management

A recent study commissioned by SimCorp has unveiled a remarkable trend in the investment management sector: over 70% of firms are now successfully employing Artificial Intelligence (AI) to optimize their front-office operations. This finding signifies a substantial leap in technology adoption compared to previous years, reflecting a growing reliance on AI for better decision-making and operational efficiency.

Key Insights from the Study

The annual survey, which gathered insights from 200 executives in the buy-side sector, including asset managers, pension funds, and insurance companies across the globe, highlights a significant increase in AI use compared to last year. In the previous report, only about 10% of respondents were actively exploring AI tools, while 75% recognized AI's potential but needed guidance on integration.

Peter Sanderson, CEO of SimCorp, noted, "The adoption of AI has shifted dramatically from pilot projects to critical applications in the front office. The advancements in AI present considerable value to investment professionals, enhancing decision-making and efficiency through a centralized and unified data layer."

The 2026 InvestOps Report indicates that critical technological initiatives include vendor consolidation and modernization of data architecture. These efforts will scale AI capabilities, automate investment workflows, and simplify technological infrastructures. The focus on vendor stability is paramount, with 57% of respondents citing it as essential for evaluating AI solutions in their investment management processes.

Innovation as a Strategic Priority

For the first time in three years, achieving competitive differentiation through innovation has overtaken operational efficiency as the primary driver of technology investments for 2026. With AI's potential growing, the belief that private markets and alternative investments are ripe for technological innovation has surged by 24 percentage points over the past year, reaching 51% in 2026.

Evaluation Criteria for AI Solutions

When selecting AI solutions, executives prioritize several factors:
1. Vendor Stability (57%): A reliable vendor that can support business needs.
2. Access to Innovation (54%): Early beta features for a competitive edge.
3. Analytical Flexibility (47%): Probabilistic outcomes for research and analysis.
4. Demonstrated ROI (45%): Evidence of ROI before large-scale deployment.
5. Governance Framework (40%): Comprehensive documentation and regulatory alignment.

These indicators illustrate the due diligence required by firms before adopting new technologies, especially in environments handling sensitive data.

Future Prospects in AI and Alternative Investments

Looking ahead, AI, generative AI, and advanced analytics are considered the most promising areas for technological innovation by 72% of respondents. The complexity and data fragmentation in alternative investments lend themselves to automation as firms increase exposure to private markets and seek to leverage technology for better operational efficiency.

To meet these growing demands, SimCorp launched SimCorp Alternatives last year, a comprehensive solution designed for firms specializing in alternative investments. This offering is set to enhance the existing portfolio of SimCorp solutions trusted by leading asset managers worldwide.

In conclusion, the findings from the 2026 InvestOps Report underscore a pivotal moment for the investment management industry as it embraces AI technologies. With the shift from pilot projects to critical operational tools, firms are strategically prioritizing innovation to stay competitive and efficient in an increasingly complex financial landscape.