During the World Data Congress, MDOTM Ltd's Partner Axel Maier, CFA was invited to discuss the implications of Artificial Intelligence on the business performance of financial institutions and how it is able to maximise their outcomes.
The era of AI democratization, as mentioned by Axel during the event, is characterized by the increasing accessibility of artificial intelligence to a broader range of people and organizations. In the investment world, this represents a huge opportunity that should not be missed to boost performance, increase efficiency and create new opportunities across organizations.
In this context, Assisted Decision-Making Platforms, are providing investment professionals with unbiased inputs, assisting them in building market views and creating forward-looking investment portfolios. With MDOTM's AI platform Sphere, for example, investment professionals leverage AI to analyse large and diverse data sets, providing unbiased market views across asset classes, geographies, and sectors to support their investment process -- all of this without the need for coding skills or building highly qualified and advanced data science and machine learning teams.
Case Study: How A Large US Asset Management Integrated AI
MDOTM's Partner presentation went beyond theoretical concepts, as he provided tangible examples and case studies showcasing the benefits of AI in the investment industry. He demonstrated how MDOTM's AI platform Sphere is used by several financial institutions across the globe to support and enhance investment decision-making. For instance, he discussed how Sphere got integrated by a large US Asset Manager to:
- Optimise their range of investment portfolios
- Conduct advanced scenario analysis
- Forecast market regime shifts
With Sphere, the client can interact with the market regime forecast feature, integrate their personalised views, and combine them with the one produced by the AI. Additionally, the client has the possibility to add a reference portfolio functionality, so they could upload a tactical/strategic Asset Allocation or custom benchmark as an additional dimension to control the enhancement of an existing portfolio. As a result, the client obtained the AI-driven optimisation of their portfolios in minutes, ultimately being more precise and adaptive as well as saving significant time.
Case Study: How A Large Swiss Wealth Management Company Integrated AI
Another case study that was mentioned involved a Swiss Wealth Management company, which is currently leveraging Sphere to:
- Create multiple model portfolios starting from their monthly market view
- Align individual client portfolios to their model while maintaining personalisation
In this case, Sphere is used for the management of multiple portfolios with customised constraints across multiple portfolio targets, for controlling personalised investible universes integrated with the existing security/fund selection activities, as well as for getting immediate alerts and notifications any time portfolio alignment or market conditions change. Thanks to the platform, the client could achieve top-line growth, better client interaction, as well as more control over the client’s portfolio.
As the AI Democratisation trend continues, investment professionals who embrace these technologies will be well-positioned to outperform their competitors and deliver greater value to their clients.
Learn The Science Of AI Adoption In Investments
Discover MDOTM's proven AI Adoption process specifically designed for C-levels and Investment Executives to integrate AI in your investment process and avoid disruption. Click below to discover how Sphere works and how you can start leveraging AI to improve your investment decisions today.
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