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Session 2.02: The Growth and Performance of Artificial Intelligence in Asset Management
Time:
Tuesday, 26/Aug/2025:
9:30am - 10:00am
Location:Carmen Conference hall
Meeting hall “Carmen”, which can accommodate up to 70 people
Presentations
The Growth and Performance of Artificial Intelligence in Asset Management
Shuang Chen1, Clemens Sialm2, David Xiaoyu Xu3
1University of Melbourne; 2University of Texas at Austin; 3Southern Methodist University
We provide a comprehensive analysis of AI adoption across various aspects of asset management by examining U.S. registered investment advisers. Since 2017, the investment advisory industry has seen significant AI adoption, primarily for investment strategies and IT infrastructure, while generative AI adoption remained minimal until 2023. AI adoption varies substantially across advisers and is related to the size and composition of advisers’ assets under management, client base, and workforce. Advisers with larger assets, a higher share of hedge funds, and fewer employees directly interacting with individual clients exhibit higher levels of AI adoption. Moreover, we estimate that AI adoption leads to increased growth of the investment advisory business and a shift toward private funds, with spillover effects extending beyond hedge funds. Our findings underscore the heterogeneity of AI applications across the diverse funds and services in asset management.
