Artificial Intelligence In Asset Management Market size is set to grow by USD 10.37 billion from 2023-2027, Rapid adoption of artificial intelligence in asset management and growing importance of asset tracking boost the market, Technavio

NEW YORK, July 16, 2024 /PRNewswire/ -- The global artificial intelligence in asset management market size is estimated to grow by USD 10.37 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of  37.88%  during the forecast period. Rapid adoption of artificial intelligence in asset management and growing importance of asset tracking is driving market growth, with a trend towards growing adoption of cloud-based artificial intelligence services in asset management. However, rising number of data privacy and cybersecurity  poses a challenge. Key market players include Amazon.com Inc., AXOVISION GmbH, BlackRock Inc., Deloitte Touche Tohmatsu Ltd., Genpact Ltd., Infosys Ltd., International Business Machines Corp., Lexalytics Inc., Microsoft Corp., New Narrative Ltd., Salesforce Inc., and The Charles Schwab Corp..

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Market Driver

Asset management is a vital business function, and the integration of cloud-based artificial intelligence (AI) services is revolutionizing its operations. AI's cost-effectiveness and scalability make it an attractive option for asset managers seeking to enhance their efficiency and decision-making capabilities. These services enable asset managers to process vast amounts of data, recognize trends, and make decisions based on real-time information. AI models can analyze economic data, market trends, and other investment variables, optimizing portfolios by identifying profitable investments. In risk management, AI plays a significant role, allowing early identification and mitigation of potential risks, minimizing losses, and safeguarding client investments. Customizable AI models cater to unique investment strategies, risk profiles, and firm requirements, providing a competitive edge. The abundance of available data is another factor fueling AI adoption in asset management. Cloud-based AI services expeditiously process this data, offering real-time insights for informed investment decisions. These factors are anticipated to fuel the growth of the cloud-based AI market in asset management during the forecast period. 

Artificial Intelligence (AI) is revolutionizing the Asset Management industry by enhancing quantitative modeling and alpha generation techniques. AI models use historical trading data to identify market inefficiencies, providing valuable insights for asset managers. Wealth management firms are leveraging AI to improve operational efficiency, streamline investment processes, and ensure data quality for better client retention. Technology companies like EagleView, an analytics provider, use AI to analyze aerial imagery and news articles for investment opportunities. Human-machine interaction systems, such as chatbots and conversational platforms, offer personalized services to both business-to-consumer and business-to-business clients. AI's ability to learn from large datasets through deep learning algorithms enables more accurate predictions and faster response times. Low interest rates and strict regulations necessitate the need for AI to generate alpha and optimize financial transactions. Natural language processing (NLP) and voice recognition programs improve human-machine interaction, while computer vision and virtual assistants offer operational advantages in a work-from-home (WFH) environment. AI's role in asset management continues to grow, with applications ranging from portfolio management to risk assessment and regulatory compliance. 

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Market Challenges

• The artificial intelligence (AI) in asset management market has experienced substantial growth in recent years, offering benefits such as improved decision-making and increased efficiency for asset management firms. However, the use of AI technology raises concerns regarding data privacy and cybersecurity. Asset managers rely on large data sets to function, but ensuring their privacy and protection is crucial. Advanced AI algorithms require access to detailed personal and financial information, making it a prime target for cybercriminals. External data sources also pose challenges, as ownership and data processing become difficult to manage and audit. Furthermore, automation of tasks through AI can lead to job losses, necessitating firms to address employment concerns. Lastly, regulatory compliance is a significant challenge due to varying laws and regulations governing data protection, cybersecurity, and AI use. These factors may increase the risk of cyberattacks and data breaches, potentially hindering market growth.
• Artificial Intelligence (AI) is revolutionizing the Asset Management industry, with conversational platforms like chatbots becoming essential for Business-to-Consumer and Business-to-Business interactions. However, challenges persist, such as strict regulations and low-interest rates. AI tools like Natural Language Processing (NLP), computer vision, and voice recognition programs are transforming investment services. With the shift to Work From Home (WFH), digital technology is increasingly important. TIFIN Group's Scotia Smart Investor uses AI algorithms and machine learning for data analysis, decision making, risk management, and portfolio optimization. Compliance monitoring, investor protection, privacy, ethical thinking, and market volatility are addressed through AI. Data sources include financial data, company announcements, and business metrics. AI's role in asset management is crucial, but it must navigate regulations, interest rates, and ethical considerations.

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Segment Overview 

This artificial intelligence in asset management market report extensively covers market segmentation by  

1. Deployment 
• 1.1 On-premises
• 1.2 Cloud
2. Industry Application
• 2.1 BFSI
• 2.2 Retail and e-commerce
• 2.3 Healthcare
• 2.4 Energy and utilities
• 2.5 Others
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 On-premises-  The on-premise segment of the global artificial intelligence (AI) in asset management market is projected to experience substantial growth in the upcoming years. On-premise AI solutions offer organizations more control and flexibility over their data compared to cloud-based alternatives. Installed locally on organizations' servers, these solutions cater to unique business requirements. On-premise AI solutions provide complete ownership and control over data, enabling customization that is not possible with cloud-based options. Additionally, they offer enhanced security, as data is stored within the organization's premises instead of on a remote cloud server, reducing the risk of data breaches. Furthermore, on-premise solutions deliver superior performance and faster response times, resulting in more accurate and actionable insights for better decision-making. Financial institutions, particularly banks and other financial organizations, are increasingly adopting on-premise AI solutions for asset management due to their need for customization and security in handling large volumes of sensitive data daily. The continuous addition of features and advancements in on-premise AI solutions is expected to fuel the expansion of the global AI in asset management market throughout the forecast period.

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Research Analysis

Artificial Intelligence (AI) is revolutionizing the asset management industry by automating various tasks, from portfolio management to customer service. Conversational platforms, such as chatbots, are a key application of AI in business-to-consumer and business-to-business asset management. These systems use Natural Language Processing (NLP) and deep learning to understand and respond to customer queries, providing personalized investment advice and improving operational efficiency. However, the implementation of AI in asset management is not without challenges. Strict regulations and low-interest rates pose significant hurdles for asset managers looking to adopt AI models. FinTech companies are leading the charge in this space, offering software platforms that use algorithmic models to analyze financial transactions and provide data-driven investment recommendations. The TIFIN AMP, a resourceful AI model from TIFIN Group, is an example of how AI is transforming investment services. It uses deep learning to understand client needs and preferences, providing customized investment solutions while ensuring data quality and client retention. The human-machine interaction systems also enable seamless communication between clients and asset managers, enhancing the overall customer experience. Despite the benefits, the implementation of AI in asset management also raises concerns around data security and privacy. Non-residents and other stakeholders must ensure that regulations are in place to protect sensitive financial information and maintain transparency in financial transactions.

Market Research Overview

Artificial Intelligence (AI) is revolutionizing the Asset Management industry by automating various tasks and enhancing business strategies. Conversational platforms and chatbots are being integrated into Business-to-Consumer (B2C) and Business-to-Business (B2B) models for efficient communication and customer service. AI technologies like Natural Language Processing (NLP), computer vision, and voice recognition programs are being used to analyze vast data volumes and make informed decisions. However, strict regulations and low-interest rates pose challenges to the adoption of AI in the industry. AI algorithms and machine learning models are being used for portfolio optimization, risk management, compliance monitoring, and decision making. Digital technology is enabling asset managers to analyze financial data, business metrics, company announcements, and other data sources for alpha generation techniques. Wealth management and investment services are leveraging AI models for operational efficiency, investment processes, and client retention. Deep learning and chatbots are being used for human-machine interaction systems, while virtual assistants are being integrated into software platforms for non-residents. Technology Insights and analytics providers like TIFIN Group are offering AI-powered solutions for asset managers to stay competitive in the digital age. The use of AI in asset management is also enabling the analysis of aerial imagery, market volatility, and financial transactions for investment opportunities. Ethical thinking, investor protection, privacy, and regulatory compliance are essential considerations in the implementation of AI models. The asset management industry is embracing digital technology to stay ahead of the curve and provide better services to clients.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Deployment
• On-premises
• Cloud
• Industry Application
• BFSI
• Retail And E-commerce
• Healthcare
• Energy And Utilities
• Others
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio