Artificial intelligence has become the leading strategic priority for global asset owners, according to new research by the Thinking Ahead Institute.
It ranks ahead of factors such as adapting to a higher inflationary environment (44%), managing liquidity pressures (33%) and responding to the growing role of private markets (28%).
The research, which draws on the responses of 20 global asset owners responsible for more than $5 trillion in combined assets, shows participants expect technology’s contribution to investment outcomes to increase from around 17% today to 30% over the next three to five years.
However, the research uncovered a widening gap between the industry’s ambitions for AI and its current capabilities, governance and data readiness. While participants expect AI to become deeply embedded in investment workflows, they also acknowledge that their existing skills, systems and operating models are not yet equipped for the shift.
Governance is also struggling to keep pace, with only a quarter (25%) of asset owners making AI a standing board or investment committee agenda item, compared to 60% who review it only occasionally.
Meanwhile, the research showed data remains the most significant practical barrier. Three-quarters of participants cite data quality and standardisation as a leading constraint on AI adoption.
Legacy systems, organisational silos and spreadsheet-based processes are already placing pressure on resources, while the growing use of AI is increasing the need for reliable, trusted and accessible data.
Roger Urwin, co-founder of the Thinking Ahead Institute, said: “Asset owners are still at an early stage of the AI adoption curve but there is no question about the increasingly important role AI will play in the future.
“Technology’s influence on asset owner outcomes is set to increase substantially, but this is not simply about installing more tools. AI is changing how investment organisations structure work, make decisions and govern risk.
“AI is becoming an organisational story rather than a technology story. The opportunity is immense, but so is the challenge. Asset owners are trying to shape their AI future at the very moment AI is reshaping theirs.”
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