BCG – AI and the Next Wave of Transformation

The global asset management industry is facing challenges as investors increasingly prefer low-fee, passively managed funds. Despite efforts by asset managers to create new products, investors are sticking to established options. Revenue growth, traditionally driven by market appreciation, is expected to slow in the future. To overcome these challenges, asset managers should focus on productivity, personalization, and private markets. The use of artificial intelligence (AI) can enhance decision-making, operational efficiencies, customer engagement, and value creation in private markets. A survey of asset managers with $15 trillion in assets under management shows a majority expect significant changes from AI in the short term. Asset managers are urged to invest in AI now to avoid being left behind in the rapidly evolving industry.