Integrating AI into Investment Strategies: Findings from SimCorp's InvestOps 2025 Survey

A recent survey conducted by SimCorp, a leading financial technology company, reveals critical insights into the integration of artificial intelligence (AI) within investment processes. The report, titled 'InvestOps 2025', highlights the views of 200 global buy-side operations leaders, indicating a strong potential for AI to enhance investment decision-making, risk management, and client interactions.

Key Insights from the Report

The results of the survey show that a significant majority, 75% of respondents, comprehend the advantages of AI integration in their operations. However, they express a pressing need for detailed guidance on how to implement AI effectively in various investment facets including data management, risk assessment, investment analysis, and decision-making processes. A respondent's comment exemplifies this need, stating, "AI can uncover risks that might have otherwise gone unnoticed."

Despite the excitement surrounding AI, 16% of the surveyed leaders feel ill-prepared to harness AI technology, while only 9% feel adequately equipped. This highlights a crucial gap in readiness to adopt AI despite understanding its potential benefits.

Dr. Georg Hetrodt, CEO of SimCorp, provides clarity on this tension: "AI should not replace jobs. Rather, it should augment human capabilities, streamline decision-making processes, and boost efficiency. For AI advancements to provide tangible benefits in investment professions, they must be supported by unified data infrastructure eliminating data silos."

Overcoming Data Challenges

The report also emphasizes the current data landscape faced by buy-side firms, with 47% of respondents noting that their data infrastructure is a patchwork of internal and third-party solutions. This complexity brings challenges. The initial step towards overcoming these hurdles involves establishing more standardized data models (67%) and creating consolidated systems for a common data layer (65%). Additionally, leveraging AI tools for improved data insights and forecasting is critical (65%). Laura Kayrouz from Alpha FMC stresses that a thorough data audit is vital to identify gaps and redundancies.

For these buy-side organizations, improving their operational efficiency remains the leading strategic priority guiding technology and operations investments for 2025. Crucially, addressing the inability to gain a comprehensive view of investments, risks, and performance poses significant challenges hindering timely product launches.

The Importance of a Unified Data Architecture

To effectively manage a multi-asset portfolio, investment managers require a robust system architecture with a real-time unified data layer. This architecture should ensure that any changes made in one part of the business instantly reflect across the entire investment lifecycle for both public and private markets. The survey indicates that 64% of respondents aim to consolidate their systems for a holistic view of their portfolios.

Marc Schröter, SimCorp’s product director, stresses the need for investment management teams to invest in data strategies to meet their objectives. With increasing portfolio diversification across asset classes, firms risk creating complex system landscapes that can result in disparate data silos, ultimately undermining operational agility and scalability.

Conclusion and Future Outlook

The findings of the Global InvestOps 2025 report underscore a clear opportunity for buy-side firms to innovate through technology. Enhanced operational efficiency, particularly through AI integration and unified data platforms, is essential for overcoming existing barriers in investment management. In the coming years, continued investment in data strategies will be crucial for navigating the evolving investment landscape.

For more detailed insights and access to the full report, visit SimCorp's website and navigate to the InvestOps report section.