Capturing the data opportunity: Institutional investors in the age of AI

Capturing the data opportunity: Institutional investors in the age of AI

In the age of artificial intelligence (AI), how big is the economic payoff for institutional investors from enhanced data use and management?

November 2023

The investment industry runs on data. Recent advances in data quality and access have built the industry to its current state. Further innovations in the aggregation and use of data will transform the investment business.

Institutional investors of all types understand that data is a must-have resource: Data remains not only the cost of entry, but also a critical means of differentiation and competitive advantage. Enter AI – the ability of computer systems to perform tasks that traditionally require human intelligence – and the rise of generative AI with the power to create content such as images, text or music autonomously. By enabling large scale data capture and manipulation at speed, generative AI has the potential to fundamentally reshape knowledge industries.

This report explores the data opportunity in the age of AI for institutional investors across their entire operations. It is the first comprehensive industry study that quantifies the data opportunity in economic terms, and provides insight into where firms stand in their data transformation, the challenges they face and the tools they have at their disposal.

The research is based on an in-depth survey of more than 500 asset owners, asset managers, wealth managers, official institutions and insurers from the Americas; Europe, Middle East, and Africa; and Asia Pacific, and is informed by interviews with external experts and partners.

Overall, we find that the data opportunity for institutional investors can be transformative, and those with a holistic strategy are already seeing significant benefits in the form of revenue growth and higher customer satisfaction, retention and acquisition. To capture the opportunity, firms are prioritizing substantial investments in technology over talent and are open to partnerships and outsourcing.

In this report, we present our findings with the aim of facilitating a greater understanding of how institutional investors can strategically position themselves for success in the rapidly evolving data ecosystem.



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