Actives face more competition from artificial intelligence

German investors anticipate a greater role for artificial intelligence (AI) in asset management and say these advanced computers are already competing with traditional active managers.Well over half (62%) of 90 German institutional investors predict greater usage of AI for short-term decision-making, and 17% for medium term investment decisions. More than half say AI is already competing with traditional active management. AI in asset management is essentially based on machine learning, where a computer makes quantitative assessments of market conditions. Markus Neubauer, managing director of Universal Investment, which carried out the survey, says artificial intelligence is displacing active management. “Over two thirds of the institutional investors believe that artificial intelligence is capable of accurately assessing emotional aspects such as greed or fear. The industry’s future thus certainly appears to be closely…


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