Global investment management firms are increasingly focused on leveraging artificial intelligence (AI) and addressing data infrastructure challenges to enhance efficiency, decision-making and investment strategies, according to a survey of 200 operations leaders.
Despite recognising the potential of AI, three-quarters (75 per cent) of respondents highlighted a need for more information to fully integrate the technology into their processes.
According to the InvestOps report, Investment Management 2025 commissioned by financial technology company SimCorp, reveals that firms see AI as a tool to enhance investment analysis, risk management and client engagement.
However, only nine per cent feel fully prepared to adopt AI, with others highlighting the need for robust, unified data layers to unlock its full potential. The top metrics for measuring the success of AI tools include improved data cleaning (46 per cent), better data visualisation (42 per cent), and faster time to insights (41 per cent).
“AI is not about replacing jobs but augmenting human capabilities, enhancing decision-making processes, and increasing efficiency,” said Georg Hetrodt, CEO at SimCorp. “However, the advancements in AI can deliver true value for investment professionals when supported by a unified data layer where all investment data is in one place, moving away from data siloes.”
Tackling data challenges
Fragmented data infrastructure remains a significant obstacle for many firms. Nearly half of respondents (47 per cent) rely on a mix of in-house and third-party solutions, creating inconsistencies and inefficiencies. To address this, 67 per cent of firms plan to standardise data models, and 65 per cent aim to consolidate systems for a common data layer, enabling a comprehensive view of investment portfolios.
“Data is the ‘key’ to the front office, yet many firms struggle with fragmented and inconsistent data sources,” said Laura Kayrouz, senior partner and global co-head of investments at Alpha FMC and one of the report’s contributors.
She added: “The first step to overcoming this challenge is a thorough data audit to identify gaps and redundancies. Once completed, firms should implement a robust data governance framework to ensure data accuracy, consistency, and compliance. This framework will form the foundation for a centralised data management solution, capable of breaking down silos and enabling unified data access across teams.”
ESG investing and innovation
Environmental, social, and governance (ESG) investing emerged as the area with the greatest opportunity for technological innovation, cited by 58 per cent of respondents. In North America, this figure rose to 81 per cent, reflecting a strong regional focus on ESG priorities.
Buy-side firms also highlighted a need for greater transparency in outsourced operations and improved capabilities for managing multi-asset portfolios. Consolidating systems for a real-time, firm-wide view of investments is a key priority for 64 per cent of respondents, aimed at reducing complexity and improving decision-making.
Outlook for 2025
Operational efficiency remains a top priority for buy-side firms as they navigate challenges such as siloed data and outdated systems.
“Investment managers increasingly need to invest in data strategies to support their goals and
decision-making capabilities,” said Marc Schröter, chief product officer at SimCorp. “Otherwise, when firms diversify their portfolios across more asset types, they risk adding complexity to their system landscape. This could lead to disparate silos of investment positions across the business, which slows the velocity of information and impacts the ability to scale. There’s a strong business case for data initiatives.”
The Investment Management 2025 report also provides analysis of these challenges and priorities, offering insights into investment operations.
