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Growing Role of AI in Investment Management

In a recent study conducted by SimCorp, a leader in financial technology, striking insights were revealed regarding the integration of Artificial Intelligence (AI) in investment management. For the first time, over 70% of buy-side firms reported successfully employing AI to enhance their front office operations. This marks a dramatic leap from the previous year's findings, where only roughly 10% had explorative AI implementations. The acknowledgment of AI's potential among managers sat at 75% last year; however, many were still seeking the right frameworks and strategies to adopt it effectively.

Shift in Priorities: Innovation Takes Lead

The 2026 InvestOps Report highlights that, for the first time in three years, the emphasis on innovation has overtaken operational efficiency as the primary driver for technology investments among firms. With 55% of respondents now focusing on achieving competitive differentiation through innovative technologies, it indicates a notable shift in strategic priorities for 2026. Previously, concerns about controlling operating costs and boosting operational efficiency took precedence, showing how the landscape is evolving.

Investor confidence in private markets and alternative investments as fertile ground for technological innovation has markedly increased in the past year. Not only does this suggest a belief in potential transformations in the sector, but also emphasizes the importance of leveraging advanced technologies to streamline operations and decision-making processes.

Vendor Stability: A Key Criterion

As the adoption of AI matures, the stability of technology vendors has emerged as a top priority when investment managers evaluate AI solutions for their operations. According to the study, 57% of surveyed firms prioritize vendor stability over feature sets. The requirement for robust data governance and cybersecurity is critical, given that proprietary data flows into AI systems. As such, firms are now favoring established vendors with comprehensive enterprise support to ensure their needs are adequately met.

The Future: Automation and Advanced Analytics

The implementation of AI aims to maximize efficiency across investment workflows, with 54% of firms focusing on modernizing technology architecture and data infrastructure. This modernization effort is essential for firms looking to scale their AI capabilities efficiently and effectively. As one of the top factors influencing decision-making, automation promises to greatly reduce manual processes, allowing firms to harness their resources towards more strategic activities like investment evaluation and risk management.

Moreover, as the technology landscape evolves, firms have recognized that advanced analytics and AI present the most significant opportunity for innovation; 72% of respondents indicated this as their primary focus area. This encompasses the exploration of generative AI and the ability to produce more probabilistic outputs for investment strategies, enhancing predictive analytics capabilities.

Conclusion

As we look ahead, the prospects for investment management firms leveraging AI technologies seem bright. With continuous advancements and increased confidence in technological frameworks, the industry is poised to embark on a transformative journey. Firms investing properly in AI and its associated capabilities stand to gain operational benefits and gain an edge in a competitive market.

This study was part of a larger survey encompassing 200 senior executives across asset management, pension funds, and insurance companies, managing at least USD 10 billion in assets under management (AUM). Conducted by WBR Insights, which specializes in independent research, the findings in the 2026 InvestOps Report reflect a rapidly evolving outlook for the intersection of finance and advanced technology.