The vast majority of North American asset managers believe disruptive technologies will be differentiators within the next five years, but few have yet to complete adopting them, according to a report from Accenture.
Based on a survey of 250 asset management executives in North America, the report, "Inventing the Future of Asset Management," says 95% of those managers believe their capabilities in areas of technology like artificial intelligence and cloud-native technology will provide them with competitive advantages by 2025.
However, when asked how far along they are in achieving those goals, in the area of artificial intelligence, just 17% are in the advanced stage in adopting AI in their organizations. Only 8% of managers have completed migrations to cloud-native technology.
"While asset managers are confident about reaching their strategic visions by 2025, operationally there's a lot they need to achieve before that can happen," said Mike Kerrigan, managing director and co-leader of Accenture's asset management practice, in a news release announcing the report.
"Asset managers need to reimagine their operations; embrace cloud, AI and data analytics to reduce costs; and, more importantly, create greater agility across their operating model and platform architecture," Mr. Kerrigan said. "Getting there won't happen overnight, so aligning capital investment, vendor partnerships and internal talent will be critical."
Also according to the report, 83% of surveyed asset manager executives want to expand their breadth of strategies as alpha becomes more difficult to achieve.
The full report is available on Accenture's website.