In our recent live event "The 2024 State of AI: Asset & Wealth Management Edition" industry experts Tommaso Migliore, CEO & Co-Founder of MDOTM Ltd and Peter Zangari, Partner & Head of Americas at MDOTM Ltd delved into the transformative impact of AI in the investments industry.
Peter, former Goldman Sachs and MSCI’s Executive, with his deep expertise in the industry shared insights on how the industry has evolved throughout the years and how technology, especially AI, is enhancing the way investment professionals make decisions.
Tommaso, on the other hand, provided a tangible glimpse into the day-to-day applications and use cases of Analytical & Generative AI, explaining how they can really enhance portfolio creation & customization at scale.
The following are the key takeaways from their discussion:
Evolution of Technology In The Investment Process
Peter Zangari highlighted the multifaceted influence of technology on the investment process, spanning research, product management, and performance generation. Over the past five years, the incorporation of artificial intelligence has significantly impacted investment management, leading to increased operational efficiency and improved client experience.
Analytical AI vs. Generative AI
The discussion touched upon two key categories of AI: analytical AI, which computes patterns and solves equations, and generative AI, which creates new content based on learned examples. Generative AI plays a crucial role in explaining complex investment behaviors in a simplified manner, enhancing operational alpha and client trust.
Integration of AI In The Investment Process
Tommaso Migliore emphasized the importance of seamlessly integrating AI technologies into existing systems to maximize their potential. Through APIs and modular solutions, AI can be integrated into legacy infrastructure, driving operational efficiency without the need for extensive software overhauls.
Phases of AI Maturity
The conversation outlined the evolutionary phases of AI adoption in the investments industry: the experimental phase, the application phase, and the implementation phase. It is projected a rapid evolution of AI use cases over the next two years, leading to a new equilibrium in investment processes.
Human-AI Collaboration
Contrary to concerns about AI replacing human roles, the speakers emphasized the complementary nature of human and AI collaboration. AI enhances human decision-making by automating mundane tasks, allowing professionals to focus on higher-value activities and adapt to the rapidly changing industry landscape.
Custom Solutions and Integration
The shift from custom products to modular software solutions enables faster experimentation and adoption of AI in asset and wealth management. A custom integration allows firms to test AI applications efficiently, measure their impact, and commit to transformative changes with minimal disruption.
Forward Outlook of AI in Investments
The discussion concluded with optimism for the future of AI in investments, with both experts expressing excitement for the ongoing evolution and innovation in the industry. As AI continues to reshape asset and wealth management, the focus remains on delivering value to clients through personalized, efficient, and explainable investment solutions.
Overall, the live event provided invaluable insights into the state of AI in asset and wealth management, highlighting its transformative potential and the collaborative role of humans and technology in shaping the future of the industry.
📣 Try Out How AI Can Drive Your Investment Results & Alpha Generation👇
.png)
.jpg)
%20(2).png){kind=spacer}
-p-800.png)