Amid the disruptive nature of technology on investing, tools such as artificial intelligence (AI), machine learning (ML) and natural language processing (NLP) are expected to make greater in-roads into investment processes across Asia.
Progress in these areas has been mixed to date, but this is set to change. Senior executives at over 175 of the region's most influential asset owners and asset management firms offered insights that suggest new technologies are set to reshape portfolio management in the following ways:
- AI, ML and NLP will play an increasing role in asset allocation and trading
- The use of AI, ML and NLP will mainly centre on generating additional alpha and managing risk more effectively
- Investors will increasingly focus on the quality of data required to implement AI and ML
- There will be greater allocation of budgets – and management attention – to systems
- At least some aspects of the role of portfolio managers and traders will be outsourced to AI, ML and NLP
These are some of the exclusive findings from an exclusive AsianInvestor survey in collaboration with Refinitiv.
You can also download a copy of the survey findings here.