Asset management: combining technology and growth strategies

At the same time, firms continue to explore new growth opportunities against a backdrop of economic uncertainty, geopolitical tensions and evolving market dynamics.

The latest Forvis Mazars C-suite barometer points to an industry focused on advancing its technology transformation agenda, with AI expected to play a significant role in future initiatives. However, regulatory considerations mean that implementation must be carefully managed, with data quality, security and governance remaining key priorities.

The research also shows that growth and technology transformation are becoming increasingly linked. As firms respond to market disruption and evolving client expectations, the ability to combine traditional growth strategies with digital innovation will be a key differentiator.

Using AI to improve efficiency and decision-making

Current AI adoption across the asset management sector is primarily focused on improving operational efficiency. According to the our C-suite barometer, firms are using AI extensively for research and analysis, as well as middle- and back-office automation. AI is also increasingly being leveraged to support decision-making and help organisations strengthen their competitive position.

Beyond these established use cases, AI is gradually being embedded across a wider range of functions throughout the asset management value chain. AI-powered analytics are helping firms identify market opportunities and deliver more personalised investment solutions, while automation is improving regulatory, financial and tax reporting processes. AI can also rapidly analyse vast volumes of annual reports, economic data and investment research, allowing portfolio managers to devote more time to higher-value investment decisions. 

While AI's ability to streamline processes and enhance decision-making continues to create efficiencies, firms remain conscious of the challenges associated with implementation. Data integrity, cybersecurity and the reliability of third-party AI providers continue to rank among the most significant concerns as asset managers expand their use of emerging technologies.

Expanding the role of AI and emerging technologies

As asset managers continue to explore the potential of AI, use cases are evolving beyond efficiency gains to include portfolio risk assessment and the identification of unusual trading patterns. While still at an early stage, these applications position AI as an intelligent assistant, supporting portfolio managers with deeper insights and enhanced decision-making.

AI is also helping firms improve both front- and back-office operations by automating repetitive processes and reducing operational risk. For example, removing manual intervention from trade order processing and dividend payments can improve accuracy while delivering meaningful cost efficiencies.

Alongside AI adoption, digital assets and tokenisation are becoming increasingly important considerations for the industry. What was once viewed as an emerging trend is now moving into the mainstream, with many firms seeing digital asset offerings as an increasingly important part of their investment proposition. Beyond meeting growing investor demand, engagement with digital assets can also demonstrate a firm's willingness to embrace innovation and emerging technologies. As AI capabilities continue to mature, focusing on targeted, high-impact use cases remains essential to maximising value.

Turning technology ambitions into action

While the case for technology transformation in asset management is becoming increasingly compelling, successful implementation remains both complex and business critical. Firms must not only understand why they are investing in AI, but also how they can deploy it responsibly and effectively within a highly regulated environment.

According to the Forvis Mazars C-suite barometer, 33% of asset management leaders report that AI is replacing certain roles, while 55% say it is creating new ones, highlighting the significant workforce changes already under way. As demand for AI, digital and data-related skills continues to rise, firms face increasing competition for talent and growing pressure on recruitment and training budgets.

To maximise the benefits of AI, organisations should equip employees with the technology, training and support needed to adapt to evolving responsibilities. At the same time, firms must establish robust governance frameworks that align AI adoption with regulatory requirements, risk management objectives and long-term business strategy. For multinational organisations, consistent AI governance policies across jurisdictions will be critical to maintaining compliance and building trust.

Aligning expansion plans with growth opportunities

International expansion remains a key strategic priority, with more than 90% of executives planning to grow their presence in overseas markets. Asset managers continue to target regions with favourable demographics and strong savings trends, including Asia's expanding high-net-worth and retirement markets. While geopolitical developments have slowed some activity, the Middle East remains an important source of wealth and sovereign fund capital.

The US continues to present attractive opportunities, particularly across private equity, private credit and infrastructure. Growth strategies are also becoming increasingly linked to investments in AI and data infrastructure, including data centres, energy management systems, and carbon capture and storage assets.

Regulatory requirements and transaction costs remain important considerations when pursuing international growth. Compliance teams must navigate ownership reporting requirements across multiple jurisdictions, while firms continue to use minority investments and strategic partnerships to facilitate market entry.

Agility remains critical. Asset managers targeting opportunities in Asia and the Middle East need the ability to mobilise capital quickly as market conditions evolve and new opportunities emerge. At the same time, consolidation across the sector continues, with larger firms acquiring specialist players to expand capabilities, increase market share and accelerate growth.

Ultimately, combining targeted investment strategies with technology transformation initiatives can provide the agility, transparency and operational flexibility needed to navigate uncertainty and unlock new growth opportunities.

Responding to volatility and market disruption

Economic volatility and geopolitical tensions remain the primary challenges to growth for asset managers, as shown in the Forvis Mazars C-suite barometer. While some firms have chosen to delay expansion plans until market conditions become more predictable, others are seeking to sustain growth by shifting towards higher-yield investment strategies to protect and enhance margins.

Rather than simply reacting to changing market conditions, asset managers have an opportunity to broaden their investment offering across the full risk spectrum. This includes cash and short-term products, longer-term investment vehicles, real assets and alternative opportunities such as digital assets. A more diversified approach enables firms to adapt allocations as economic and geopolitical conditions evolve, while also meeting growing investor demand for a wider range of investment options.

In an environment characterised by uncertainty, diversification, agility and disciplined portfolio management are becoming increasingly important drivers of resilience and sustainable growth.