Only 8% of fund managers report improved investment returns from AI adoption: Report
Synopsis
Despite growing adoption of artificial intelligence (AI) in the global asset management industry, only 8 per cent of fund managers have reported measurable improvements in investment returns, according to a joint research report by Morgan Stanley and Oliver Wyman.
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ANI
Despite growing adoption of artificial intelligence (AI) in the global asset management industry, only 8% of fund managers have reported measurable improvements in investment returns, according to a joint research report by Morgan Stanley and Oliver Wyman.
The findings highlight a gap between the increasing use of AI by investment firms and its ability to deliver better returns for investors.
The September 2026 BluePaper report, titled Breaking from the Pack: The Race for Above-Market Growth, cited the Mercer 2026 AI in Asset Management Survey, which found that 55% of asset managers had integrated AI into at least one part of their investment process, while another 27% were testing applications.
However, the benefits have largely remained limited to operational efficiency and research capabilities.
"Notably, investment returns have not yet seen widespread impacts from AI, with just 8% of firms reporting measurable benefits," the report stated.
According to the survey, 69% of asset managers reported improved operational efficiency, while 55% cited better insights and decision-making. However, only 24% reported reduced costs.
AI adoption was strongest in investment research, where 49% of firms had integrated the technology, followed by data processing at 40%.
Its use remained limited in core investment decisions, with only 13% integrating AI into portfolio construction and 7% into trade execution.
"Whether greater research breadth ultimately translates into persistent alpha remains unproven," the report said, referring to returns above market benchmarks.
The report also cautioned that faster research and improved productivity do not necessarily translate into financial gains.
"However, productivity gains do not automatically translate into enterprise-wide financial impact," it stated.
The findings suggest that while AI is helping investment firms process information faster, its ability to consistently improve investor returns remains uncertain.
The findings highlight a gap between the increasing use of AI by investment firms and its ability to deliver better returns for investors.
The September 2026 BluePaper report, titled Breaking from the Pack: The Race for Above-Market Growth, cited the Mercer 2026 AI in Asset Management Survey, which found that 55% of asset managers had integrated AI into at least one part of their investment process, while another 27% were testing applications.
However, the benefits have largely remained limited to operational efficiency and research capabilities.
"Notably, investment returns have not yet seen widespread impacts from AI, with just 8% of firms reporting measurable benefits," the report stated.
According to the survey, 69% of asset managers reported improved operational efficiency, while 55% cited better insights and decision-making. However, only 24% reported reduced costs.
AI adoption was strongest in investment research, where 49% of firms had integrated the technology, followed by data processing at 40%.
Its use remained limited in core investment decisions, with only 13% integrating AI into portfolio construction and 7% into trade execution.
"Whether greater research breadth ultimately translates into persistent alpha remains unproven," the report said, referring to returns above market benchmarks.
The report also cautioned that faster research and improved productivity do not necessarily translate into financial gains.
"However, productivity gains do not automatically translate into enterprise-wide financial impact," it stated.
The findings suggest that while AI is helping investment firms process information faster, its ability to consistently improve investor returns remains uncertain.
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