While AI and machine learning continue making transformative changes to asset management, generative AI is causing its own revolution.
GenAI remains the most popular subset of artificial intelligence, with ChatGPT and similar tools seeing widespread use. Its ability to generate text and media content by entering a prompt offers significant benefits to asset management firms.
Let’s examine the growing impact of GenAI on the modern asset management process. Leverage these insights as a source of inspiration for potential use cases for the tech in your own work. It ultimately provides the ability to make your operations more efficient and effective. Connect with The CERES Group for access to technical talent with experience building GenAI solutions.
Generative AI helps Asset Managers save on Expenses
One of the largest benefits of GenAI for asset managers involves a significant reduction in expenses. According to McKinsey, leveraging AI, generative AI, and agentic AI for processing results in lowering costs by 25-40 percent. While machine learning and GenAI are currently in use in asset management, agentic AI is still an emerging technology.
Where generative AI especially benefits asset management largely relates to the sales and marketing role. Automating the creation of advertising content makes marketers more efficient. Notably, it also improves the efficiency of the software development process, helping programmers accomplish more in less time.
GenAI lets Asset Management Firms provide Superior Customer Service
Generative AI also provides a significant impact by improving the customer service process for asset management institutions. The McKinsey study reported a 9 percent improvement in efficiency for any client-facing role. Having virtual agents support their human counterparts makes the latter more effective, improving customer satisfaction. GenAI also makes new customer/client onboarding more effective by automating this process, improving data quality and accuracy.
Significant Benefits to Risk Management with Generative AI
When streamlining the myriad of time-consuming processes using automation, GenAI also provides benefits to risk management. McKinsey estimates a 5 percent improvement in efficiency for asset management firms applying generative AI to risk management. One benefit involves using AI to analyze changing regulatory requirements while finding gaps in documentation.
Monitoring tools powered by GenAI also detect anomalies in data, improving the detection of fraud and other non-compliance risks. All told, leveraging GenAI makes sense for any asset management firm hoping to improve its efficiency. Obviously, adopting this innovative technology remains an important competitive differentiator in this part of the financial sector.
If you need an influx of IT talent with GenAI experience, contact The CERES Group. As one of the top technical staffing agencies in Boston, we provide exceptional candidates with the right skills. Schedule some time with us to discuss your current hiring needs.
