In investment management, technological innovation is no longer optional — it’s essential. Artificial intelligence (AI) has evolved from a niche tool to a cornerstone of modern portfolio strategy. Yet even as AI matures, the question remains: Are clients and portfolio managers ready to trust it as a core decision-making engine?
AI adoption in investment management is accelerating. Robo-advisors, once the leading edge of automation, are now projected to manage $2.3 trillion by 2028, according to Statista. Though largely retail-focused, they reflect changing investor expectations: personalization, responsiveness, and data-driven strategies. But moving from human-centric to AI-augmented investing requires a foundation of data, performance and trust, particularly with the next generation of AI-driven (institutional) investment solutions that use generative AI and machine learning to optimize and customize portfolios and predict returns.
Institutional and retail investors sentiment is shifting:
- Natixis Investment Managers: 64% of institutional investors have increased their use of AI, up from 54% the previous year. 75% believe AI will unlock new investment opportunities, and 63% think it will help uncover previously undetectable portfolio risks.
- Mercer: 91% of asset managers are either currently using or planning to use AI in their investment processes. The primary applications include augmenting data analysis and idea generation, with AI informing rather than determining final investment decisions.
- At the Swiss Wealth Retreat by Citywire Switzerland in May 2025, wealth managers and family offices discussed how AI is reshaping their work. Notably, 50% said they’d consider giving AI a vote on their investment committee.
- World Economic Forum (2025): A survey of over 13,000 respondents across 13 countries found that 41% of Gen Z and Millennials are willing to allow an AI assistant to manage their investments, compared to only 14% of Baby Boomers.
- LSEG : Willingness to adopt AI-enabled processes to manage investment portfolios is gaining momentum globally, with 53% of retail investors in North America and 43% in both Europe, the Middle East and Africa, and the Asia-Pacific region expressing openness to this technology.
The signal is clear: innovation and AI will be key for firms aiming to stay competitive.
From automation to advantage: the portfolio manager’s role
Portfolio managers are navigating tighter margins, faster cycles, and evolving mandates. More data isn’t the answer — smarter execution is.
AI becomes strategic when used to:
- Rebalance portfolios in real time
- Improve risk assessments via predictive analytics
- Deliver personalized strategies at scale
- Remove cognitive bias through model-based decisions
Trust and transparency: the key to adoption
Performance alone doesn’t drive adoption. AI must be explainable, transparent, and aligned with fiduciary duties.
That’s why aisot prioritizes clarity in model design. Our aisot AI Insights Platform delivers explainable, auditable predictions and is meant to enhance human decision-making. This hybrid model is fast becoming the industry standard.
The future is collaborative
AI is not a competitor to portfolio managers — it’s their most powerful new ally. Firms that adopt AI today won’t just meet client expectations; they’ll shape them.
At aisot, we believe success in asset management won’t depend on who has the most data, but on who acts on it the smartest — and fastest. That’s the power of AI.
If you’re building next-gen investment strategies, legacy tools won’t get you there.
Are you a qualified investor and want to see how our AI-driven platform can enhance your portfolio? Schedule a demo today to learn more.