Three-quarters of investment management executives say they need more guidance on effectively implementing artificial intelligence in their operations, according to a new industry survey, highlighting the challenges firms face as they try to modernize their investment processes.
The InvestOps Report commissioned by SimCorp and conducted by WBR Insights found that while most buy-side leaders recognize AI’s potential benefits, only 9% feel very prepared to leverage the technology. The survey of 200 buy-side executives revealed that 16% feel unprepared, while the vast majority seek clearer direction on applying AI across investment analysis, decision making, risk management, and client engagement.
Buy-side firms are particularly focused on AI’s potential to improve data management, with 46% citing increased efficiency in data cleaning as their primary success metric, followed by enhanced data visualization at 42% and faster time to insights at 41%.
“AI is not about replacing jobs but augmenting human capabilities,” said SimCorp CEO Georg Hetrodt. He emphasized that AI’s value depends on having unified data infrastructure rather than siloed systems.
The survey exposed persistent data management challenges, with 47% of respondents reporting they use a mix of in-house and third-party solutions. To address these issues, 67% plan to build more standardized data models, while 65% aim to consolidate systems and utilize AI tools for better insights.
Multi-asset investment strategies present a particular challenge, with 60% of front office teams struggling to manage multiple asset classes in a single view. In response, 64% of firms plan to consolidate their systems to achieve real-time total portfolio views.
Laura Kayrouz, Senior Partner at Alpha FMC, who contributed to the report, stressed the importance of conducting thorough data audits and implementing robust governance frameworks as crucial first steps toward centralizing data management.
“What we see from this research is that investment managers increasingly need to invest in data strategies to support their goals and decision-making capabilities,” noted Marc Schrรถter, SimCorp’s Chief Product Officer, warning that portfolio diversification without proper data infrastructure risks creating information silos that can impede scaling.