AI in Asset Management: Buy-Side Attitudes toward GenAI and LLMs

Since ChatGPT exploded onto the scene in late 2022, financial markets participants have been trying to understand the opportunities and risks posed by artificial intelligence and in particular generative AI (GenAI) and large language models (LLMs).

While the full value of the technology continues to become apparent, it’s already clear that AI has enormous potential to accelerate and streamline data processes, with the promise of substantial productivity gains and competitive advantage. But, although AI adoption is a high priority for many firms, concerns about lack of expertise, security and trust may be encouraging organisations to take a more cautionary approach.

To explore these themes, this spring A-Team and Rimes Technology conducted a survey of senior data management and operations officers, including front-office data chiefs and portfolio management staff at 17 buy-side firms. The survey offers insight into:

• How buy-side institutions and institutional investors are managing their AI transformation
• Financial institutions’ attitudes and goals regarding the implementation of AI
• Their progress in achieving those targets
• The pain points that they are encountering
• The factors that are holding back those firms that have been slower to adopt AI capabilities.

In short, the survey represents an objective snapshot of attitudes and approaches towards AI among financial institutions as they grapple with the many issues – and potential benefits – this emerging technology has to offer.