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Fund managers tentatively roll out AI technology
ASSET MANAGER PANELLISTS AT FUND FORUM HAVE SEEN A CHANGE IN MINDSETS TOWARDS AI , BUT REMAIN WARY ABOUT FULL-SCALE ADOPTION .
Financial services – including fund management – are increasingly embracing artificial intelligence ( AI ) and robotics as staff become more comfortable with using the technology , but the industry needs to temper its expectations around projected cost savings , according to a panel of experts , speaking at Fund Forum International in Berlin .
AI is generating enormous interest across financial services as margin-constrained businesses look to contain costs and curtail spending on repeat processes which do not contribute to the bottom line , such as regulatory reporting . AI tools like RPA ( robotic process automation ) also help expedite the time it takes to complete repetitive tasks , doing so with a far higher degree of accuracy than any human intermediary ever could . Implementing an AI solution is not without its challenges though and employee concerns about job security need to be addressed . “ Robots are seen by staff as a threat as repeat tasks are effectively being removed . Nonetheless , attitudes are changing as people now recognise the technology brings about opportunities . We have certainly seen a change in mindsets ,” said Edward Wierenga , head of business implementation at NN Investment Partners . Wierenga acknowledged that compiling bespoke client reports – which on average can take up to four days to complete using existing systems and technology – could be concluded in minutes via AI enabled software bringing massive efficiencies internally . As a consequence , staff who would have normally been saddled with mundane project work can focus their resources on more interesting work . Simultaneously , clients are also likely to benefit as they will receive AI generated reports in much better time than what they would done have before . “ Robotics does introduce speed and reliability , but it is not a free lunch . Humans add common sense to an equation . A robot , for example , flipping burgers will not be able to assess if it is frying proper meat , as it will cook whatever is given to it ,” commented Niall Bellabarba of Elinvar . As such , a human overlay is necessitated to ensure the data being provided to AI software is of sufficient quality otherwise it could result in firms making serious mistakes . While AI brings a number of advantages such as business efficiencies and heightened security , implementing the technology does not facilitate immediate cost savings as it introduces added overheads , said Arnaud Misset , chief digital officer at Caceis . Lorna Martyn , head of technology at Fidelity Investments , agreed . “ AI has with it licensing costs . There is also an ethical dimension to AI . If customers are dealing with AI technology , it needs to be made very clear to them that they are interacting with a robot and not a person ,” she said .
$ 20 billion
McKinsey highlighted this year that robotics and automation could generate $ 20 billion in savings across the securities services industry .
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