Keeping track of existing data assets is increasingly difficult, but detailed curation of this vital company information can help streamline evolving digital governance processes.
While on the other hand, AI has been playing a growing role in capital markets over the past 15 years. The term most commonly refers to the development of computer systems capable of decision-making tasks normally requiring human intelligence.
Computers are able to perform such tasks at exponentially higher speeds and frequency, which is impossible for humans. Thus, lowering the costs.
Big data is considered AI’s lifeblood and has attracted a record level of interest in these technologies.
The barrage of data is coming from an increasing number of sources, and ever-more-efficient analytical methods and architectures are showing potential for transforming the entire asset management industry through vast competitive advantages. This disruption can already be seen in the success that interactive investment technologies such as so-called “robot advisors” have experienced.
‘big data’ is currently fueling the evolution of AI-driven investment analytics.2 The term alludes to the role that AI has played in enhancing the reach of data. This has been done through the development of tools that enable more efficient ways to mine, analyze, curate and utilize data, essentially powering the conversion of that information into better investment decisions and new investable products.
Transforming passive investments.
Data and technology will continue to play an increasingly larger role in how money is managed. Given how the invention of the Internet browser eventually radically transformed the retail industry, the disruptive power of new technologies in finance cannot be overstated. The asset management industry may be in the early stages of a similar process. But this time around, with more-advanced technology, higher penetration ratios and two decades of experience in innovation can truly transform the way we live.
“Smart beta” is the name given to benchmarks whose membership is determined by criteria other than market capitalization. They rely instead on metrics such as dividend or value to construct an investment strategy.
Data and technology will continue to play an increasingly larger role in how money is managed. Given how the invention of the Internet browser eventually radically transformed the retail industry, the disruptive power of new technologies in finance cannot be overstated. The asset management industry may be in the early stages of a similar process. But this time around, with more-advanced technology, higher penetration ratios and two decades of experience in innovation can truly transform the way we live.
