Generative AI expands into investment processes but fails to replace fund managers

‘We are cautious about the hype’

Asset managers are increasingly looking into generative artificial intelligence (AI) to boost process efficiency, but investors doubt it will replace "human judgment".

AI adoption by financial services firms is expanding at a rapid pace, according to research by the Bank of England and Financial Conduct Authority, showing that three quarters of UK firms are already using AI, with room for a further 10% to adopt it over the next three years. This matched the trend forecast in the original 2019 Machine learning in UK financial services survey, and the follow up in 2022, where the Bank of England found that 72% of firms surveyed reported they were using or developing machine learning applications. At the time, the BoE precited a 3.5 times increase on t...