Investments
February 3, 2023 - 2 min

Artificial intelligence in asset management

AI has the potential to revolutionize the way this industry operates, delivering benefits for both companies and their customers.

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Artificial intelligence can be described as the simulation of human intelligence processes by computers. These processes, such as learning and reasoning, allow computers to perform tasks that normally require human intelligence. To do this, they require data and algorithms (a set of steps or rules for problem solving) to learn from, allowing them to make decisions and predictions based on the information provided.

The world is currently undergoing a technological revolution, where organizations are storing more and more data faster and faster than ever before. organizations are storing more and more data at a speed never seen before. And in order to exploit this data, the use of artificial intelligence has been increasing, due to its ability to analyze it. The asset management business is no exception.

The use of this type of technology at every stage of the investment process by asset managers is increasing. Artificial intelligence has the potential to revolutionize the way this industry operates, delivering benefits for both companies and their clients.

By automating certain parts of the investment process, artificial intelligence can help reduce the risk of operational errors (human errors) and improve efficiency. (human error) and improve efficiency, freeing up time and resources for analysts to focus on other aspects of their work, such as more complex and relevant decisions, by automating systematic tasks.

By using artificial intelligence, financial data can be processed and interpreted, including financial statements, market trends, economic indicators, among others. This allows more informed decisions to be made and to stay ahead of market trends, resulting in better results for clients.

Among the benefits of using this technology are the prediction of company bankruptcies, prediction of stock prices, assignment of bond credit risk ratings, among others. The algorithms make it possible to identify patterns and make predictions with a high degree of accuracy.

In conclusion, the incorporation of artificial intelligence is proving to be a disruptive technology in this industry. The ability to process and analyze large amounts of data in real time, combined with its ability to deliver information to make more informed decisions, is revolutionizing the way professionals approach their work. By optimizing operations, reducing the risk of human error and providing valuable insights, artificial intelligence is driving significant improvements in efficiency, accuracy and overall performance in the financial industry.

With its potential, the future of artificial intelligence in the investment sector looks promising, and the benefits it delivers are likely to continue to increase as the technology progresses.and the benefits it delivers are likely to continue to increase as the technology progresses.

Vicente Dourthé AGF Team