New research from Clearwater Analytics suggests artificial intelligence is influencing how investors engage with asset managers, with all surveyed firms reporting an increase in client enquiries about their use of AI.
The research covered insurance asset managers, hedge funds, private markets specialists, and general asset managers. It found 43% of respondents said between a quarter and half of their client base asks how AI is used, while around two-fifths said between 10% and 24% of clients investigate their use of the technology.
According to the research, investors and institutional allocators are increasingly scrutinising how fund managers integrate AI, and are more likely to invest in firms that allocate budget to AI research and implementation. More than a third of respondents (34%) expect this trend to increase dramatically over the next three years, while 57% expect it to increase slightly. Just under one in 10 (9%) expect it to remain unchanged.
Respondents also reported positive client sentiment about their AI use. The research found 85% said investors’ perception of their AI deployment is positive, while 10% said it is very positive.
Asset managers surveyed also expressed confidence in their AI maturity relative to competitors. Thirteen per cent said they are more advanced than other firms, 71% described themselves as “quite advanced”, 15% said they are comparable, and 2% said they are falling behind.
When asked which areas of AI matter most to clients, respondents most commonly cited data governance, accuracy, and enterprise security. Automation and the degree of human intervention were ranked lower.
The research also pointed to the growing importance of agentic AI. It found 91% of respondents said autonomous AI agents capable of handling multi-step tasks with minimal human intervention are important to their business, while 2% said they are critical.
On client engagement outcomes, asset managers reported that AI-powered support and Q&A, along with automated client communication and reporting, have had the most positive impact. Respondents also cited personalisation at scale, improved transparency and timeliness, and sentiment analysis.
You can read the full report here.
