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Integrating AI into Investment Processes: Key Insights from SimCorp's 2025 Report

In the evolving landscape of investment management, a recent survey conducted by SimCorp sheds light on the pressing need for better integration of Artificial Intelligence (AI) within investment processes. The insights outlined in the 2025 InvestOps Report are based on data collected from 200 buy-side operations leaders across the globe, highlighting both the opportunities and challenges that these organizations are facing as they navigate the complexities of data infrastructure and investment strategies.

Understanding the Significance of AI

According to the report, an impressive 75% of respondents recognize the potential advantages of incorporating AI into their investment frameworks. However, there exists a significant knowledge gap regarding the practical implementation of these technologies. Participants expressed interest in how AI can facilitate various aspects of investment management, including investment analysis, decision-making, risk management, data management, and client engagement. For instance, one respondent indicated that AI tools could reveal potential risks that might otherwise go unnoticed.

Despite this enthusiasm, 16% of participants admitted they feel unprepared to utilize AI effectively, while only 9% felt very prepared. Georg Hetrodt, CEO of SimCorp, emphasized that AI should be seen as a tool to enhance human capabilities rather than a threat to jobs. He noted that the true value of AI will be realized when supported by a unified data layer that consolidates all investment-related data, thus moving away from the current fragmented data environment.

Overcoming Data Challenges

One of the most pressing issues highlighted in the report is the struggle that nearly half of the surveyed leaders face with their current data infrastructure, which often relies on a mix of in-house and third-party solutions. The lack of unified and standardized data models is frequently cited as a barrier to effective data analysis and decision-making. To address these data challenges, 67% of respondents plan to implement more standardized data modeling, while 65% seek to consolidate their systems into a common data layer.

Laura Kayrouz, Senior Partner at Alpha FMC, underscores the importance of conducting thorough data audits to identify existing gaps and redundancies. Implementing a strong data governance framework will ensure accuracy, consistency, and compliance, serving as a backbone for centralized data management solutions. This foundational step is crucial in tackling the widespread issue of data fragmentation.

Prioritizing Multi-Asset Strategies

In terms of operational initiatives, advancing data and operational efficiency for multi-asset investment strategies emerged as the top priority for buy-side organizations. Alarmingly, 60% reported difficulties in managing multiple asset classes from a single view, which complicates the decision-making process. As a remedy, 64% of respondents have plans to consolidate their systems to achieve a real-time total portfolio view across both public and private markets.

Marc Schröter, Chief Product Officer at SimCorp, urged that it is essential for investment managers to invest in strategic data initiatives, especially as they diversify portfolios. Failure to do so risks creating disjointed silos of information that hamper efficient decision-making and scalability.

The Road Ahead

Among other noteworthy findings, the report highlights that improving operational efficiency is the top strategic goal for technology and operational investments in 2025. Furthermore, many firms report challenges regarding the inability to obtain a comprehensive view of investments and performance metrics, which hinders timely product launches.

In a striking observation, the report indicates that Environmental, Social, and Governance (ESG) investing could provide the best opportunities for technological advancement in upcoming years, especially within North America, where 81% of respondents see room for growth.

As firms strive to enhance their operating models over the next 24 months, a growing demand for greater transparency in outsourced operations data is also noted. This demand illustrates a clear movement towards focusing on core business competencies while leveraging external services for non-critical functions.

For more insights and to delve deeper into the comprehensive content of the report, stakeholders and interested parties can access the full 2025 Global InvestOps Report by SimCorp. This report promises to serve as a valuable resource for investment professionals looking to bridge the gap between traditional practices and the transformative potential of modern technologies like AI.