AI as A Competitive Differentiator for Asset Managers<span class="badge-status" style="background:red">Premium</span> 

AI as A Competitive Differentiator for Asset ManagersPremium 

Companies mentioned: Adobe (tkr: ADBE), Alteryx (tkr: AYX), Amazon (tkr: AMZN), Automation Anywhere (private), BNY Mellon (tkr: BK), DataRobot (private), Google (tkr: GOOG), Microsoft (tkr: MSFT), Pegasystems (tkr: PEGA), Salesforce (tkr: CRM), SAS (private), SS&C Technologies (tkr: SSNC), Tableau (tkr: CRM, acquisition closed August 1st 2019), Tibco (private). Word count: 1,111.

Two major trends have dramatically changed the Asset Management industry over the past number of years: 1.) a massive rotation of assets from actively managed products to passive products and 2.) fee compression. To a degree the latter is the result of the former. As alpha generation is de-emphasized, asset managers must look elsewhere for sources of competitive advantage and financial performance. Artificial Intelligence (“AI”) and related technologies can be that strategic lever.

For purposes of this article we won’t focus on active managers that leverage AI and Machine Learning (“ML”) to power their investment decision-making process. We will instead focus on other functional areas that may leverage AI, ML, Deep Learning (“DL”), Robotic Process Automation (“RPA”) and Predictive Analytics, collectively known as Intelligent Process Automation (“IPA”) when they work together in a cohesive system.


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