SAN FRANCISCO, July 22, 2020 /PRNewswire/ -- The global AI in asset management market size is expected to reach USD 13.43 billion by2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 37.1% from 2020 to 2027. Artificial intelligence in asset management refers to the automation of IT assets lifecycles with intuitive workflows and making informed decisions about asset vendors and capacity. Asset and wealth management firms are exploring potential artificial intelligence-based solutions to improve their investment decisions and extract insights out of their historical data. The current landscape of artificial intelligence (AI) applications in asset and investment management includes the management of digital assets and physical assets and investment advisory consumer applications. For instance, The Vanguard Group, Inc., a U.S.-based investment firm, offers the PAS (Personal Advisor Services), which runs on automated algorithms and can potentially prompt customers with investments-related advisories with insights from human advisors.
The COVID-19 outbreak has created significant uncertainties and challenges for the WAM industry. However, this crisis may accelerate certain activities related to the speed of digital transformation and automation as some markets have shown high acceptance towards digital or virtual approaches related to client interaction and distribution. Moreover, key players are leveraging AI and machine learning technologies to improve resilience and enhance productivity. For instance, in April 2020, Exabel, a Norway-based FinTech company that provides an AI platform for active asset managers, announced its partnership with 1010data, Inc., a U.S.-based data provider to the consumer goods, retail, and BFSI industries. Under the agreement, both the companies are working on building COVID-19 impact dashboards, which will derive the information from multiple sets of live debit and credit transaction data. This information is anticipated to provide investors real-time insights into how this pandemic impact consumer spending in grocery and general merchandise, retail, and travel industries across U.S. Furthermore, omnichannel and ecosystem strategies are expected to become embedded within the capital markets sector to maintain restricted social distancing and travel in place.
Key suggestions from the report:
Asset management organizations are using natural language processing (NLP) and other AI techniques to recommend optimal actions for specific processes by analyzing voice and text communications
NLP associated with machine learning technology helps in incorporating a wide range of sources into press releases, financial reports, retrieving filings, investment models, and social media activity
Portfolio construction and optimization is an effective application of AI in asset management as it provides predictive forecasting of long-term price movements
In asset management, social media analytics is an emerging trend, which is primarily used for research analyst opinion, market sentiment, influencer, and demography analyses.
The global artificial intelligence in the asset and wealth management industry has been steadily expanding and witnessing substantial transformations due to the fundamental shift in global finance and technology. The noticeable rapid progress in technology in the last two decades has significantly improved the way industry professionals store and process data. The cost of collection and processing of stock market data across verticals has consequently reduced, which has brought new possibilities for improvement in decision-making mechanisms across industries. Analytics is revolutionizing the problem-solving paradigms of the asset management industry by reforming the functioning of some of the dimensions, including client profiling, product recommendations, customer churn, sentiment analysis, and marketing and strategy.
Grand View Research has segmented the global AI in asset management market based on technology, deployment mode, application, vertical, and region:
Artificial Intelligence In Asset Management Technology Outlook (Revenue, USD Million, 2016 - 2027)
Natural Language Processing (NLP)
Artificial Intelligence In Asset Management Deployment Mode Outlook (Revenue, USD Million, 2016 - 2027)
Artificial Intelligence In Asset Management Application Outlook (Revenue, USD Million, 2016 - 2027)
Risk & Compliance
Artificial Intelligence In Asset Management Vertical Outlook (Revenue, USD Million, 2016 - 2027)
Retail & E-commerce
Energy & Utilities
Media & Entertainment
Artificial Intelligence In Asset Management Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East & Africa(MEA)
List of Key Players of Artificial Intelligence (AI) In Asset Management Market
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.