Will AI Deliver More Alpha to Institutional Investors

This document highlights the transformative impact of AI on institutional investing. It defines core AI concepts, discusses its macroeconomic effects, and outlines how it’s changing investment management, including asset manager selection, portfolio risk management, and the crucial need for data governance. It also describes the key attributes of AI-integrated asset managers, the importance of proprietary data and effective implementation and provides examples of how institutional investors are already using AI. The document concludes by highlighting that successful integration of AI will be a major source of competitive advantage in the investment industry.