A Morgan Stanley & Oliver Wyman report finds that despite high AI adoption in asset management, only 8% of fund managers see better investment returns. Benefits are largely limited to operational efficiency, not financial gains for investors.
Despite growing adoption of artificial intelligence (AI) in the global asset management industry, only 8 per cent of fund managers have reported measurable improvements in investment returns, according to a joint research report by Morgan Stanley and Oliver Wyman. The findings highlight a gap between the increasing use of AI by investment firms and its ability to deliver better returns for investors.
Efficiency Gains Outweigh Investment Returns
The September 2026 BluePaper report, titled Breaking from the Pack: The Race for Above-Market Growth, cited the Mercer 2026 AI in Asset Management Survey, which found that 55 per cent of asset managers had integrated AI into at least one part of their investment process, while another 27 per cent were testing applications. However, the benefits have largely remained limited to operational efficiency and research capabilities. "Notably, investment returns have not yet seen widespread impacts from AI, with just 8% of firms reporting measurable benefits," the report stated.
AI Adoption Strongest in Research
According to the survey, 69 per cent of asset managers reported improved operational efficiency, while 55 per cent cited better insights and decision-making. However, only 24 per cent reported reduced costs. AI adoption was strongest in investment research, where 49 per cent of firms had integrated the technology, followed by data processing at 40 per cent. Its use remained limited in core investment decisions, with only 13 per cent integrating AI into portfolio construction and 7 per cent into trade execution.
Link to Financial Gains Unproven
"Whether greater research breadth ultimately translates into persistent alpha remains unproven," the report said, referring to returns above market benchmarks. The report also cautioned that faster research and improved productivity do not necessarily translate into financial gains.
"However, productivity gains do not automatically translate into enterprise-wide financial impact," it stated. The findings suggest that while AI is helping investment firms process information faster, its ability to consistently improve investor returns remains uncertain. (ANI)
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