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Alternative Market Briefing

Other Voices: The future of AI in asset management: one, five and 10-year outlook

Tuesday, May 13, 2025

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By Giuseppe Sette, Co-Founder & President, Reflexivity

Artificial intelligence is no longer a futuristic abstraction for the asset management industry. It is already reshaping how firms analyze markets, construct portfolios, and manage risk. From high-frequency trading to robo-advisory services, AI is transforming financial decision-making at an unprecedented pace. But how will this evolution unfold over the next decade? This article outlines the trajectory of AI's impact on asset management in the short, medium, and long term.

The Next 12 Months: Incremental Automation and Efficiency Gains

In the immediate term, AI's influence will manifest primarily in efficiency gains and automation. Asset managers are already leveraging machine learning to process vast datasets, automate routine reporting, and streamline compliance functions. AI-driven natural language processing tools are also being deployed to scan regulatory changes, ensuring firms remain compliant in a rapidly evolving legal landscape (because who doesn't love an unexpected audit?).

Risk management, too, will see short-term improvements. AI algorithms can analyze millions of data points in real-time, identifying market anomalies or shifts before human analysts can. This allows firms to mitigate exposure to sudden market downturns or liquidity risks-essentially serving as an early warning system for financial turbulence. Meanwhile, robo-advisors are becoming more sophisticated......................

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