Author: The Investment Association– theia.org

Embracing disruptive technologies, such as AI, is a competitive imperative for firms. Firms must either disrupt themselves from within or be disrupted from the outside. At the same time, technologies must be adopted with care, with full regard for the risks involved and awareness of regulatory obligations, and where these are yet to be fully codified, regulatory expectations.

At the Investment Association (IA), we recognise the growing importance of technology as we all become more digitally aware. Technology, whether directly or indirectly, underpins much of how investment management firms operate. In 2018, the IA started its fintech hub and accelerator, the IA Engine, with the mission to fuel the adoption of technology within investment management. In 2020, the IA established its Technology Forum to consider the opportunities, challenges and use cases of new technologies, and help define the IA’s policy objectives regarding technology.

The Technology Forum’s first order of business was to identify the key tech trends which will shape the future the investment management industry. Top of the list was AI. The Forum subsequently embarked on a series of deep dives, facilitated by experts from EY and Clifford Chance, setting out to separate fact from fiction, demystify the topic and unearth insights that will be of value to industry professionals.

This report leverages the value of these sessions and disseminates the lessons learned for the benefit of the wider IA membership and other interested parties. It explores how investment managers are already using AI, how it is being developed in firms, the regulatory landscape and how firms can manage the many risks of both developing and using AI.

We hope the report will provide a useful and accessible overview of the key considerations surrounding the use and development of AI for firms.

The full report can be found here