AI-Driven Research is Changing What Analysts and Managers Do
Asset managers are increasingly using artificial intelligence to streamline research and due diligence for investments. While AI has been part of sentiment analysis and data pattern recognition for some time, new customizable platforms now scan fresh data sources faster and more efficiently. These tools can produce reports and investment summaries in a fraction of the time it used to take, freeing analysts and portfolio managers to focus more on client relationships and strategic tasks.
Many portfolio managers already use or plan to adopt AI tools to speed up their workflows. One manager shared how an AI research platform quickly generated insights on a recent Treasury bond event—a task that once took a junior analyst two weeks but now takes just minutes. This time saving allows junior analysts to focus on more valuable work. Interestingly, the same firm plans to reduce junior analyst hiring next year, though they say these trends aren’t directly linked.
Bespoke AI Tools for Investment Research
Some firms develop their own AI platforms. For example, Schroders Capital created the Generative AI Investment Analyst (GAiiA), accessible to teams involved in private equity and direct investments. GAiiA drafts investment memos from specific documents, which human analysts then verify and finalize before submitting to the investment committee. The AI’s analysis is grounded in the original documents, reducing false or fabricated information (“hallucinations”). It also provides clickable sources for verification and allows users to update or dive deeper into specific data points.
Nils Rode, CIO of Schroders Capital, says the main goal is to improve analysis quality and consistency, not to replace people. The firm recently introduced a virtual “investment committee agent” that uses historical data to offer insights on sector trends, business models, and risks. This tool supports professionals but doesn't supplant their expertise. Instead, it accelerates their work and lets them focus on higher-level tasks.
AI Solutions for Firms Without Large Resources
Not every firm can build custom AI tools like Schroders. Companies like martini.ai offer AI-driven credit research specifically for corporate credit analysts. Their platform automates financial analysis, credit scoring, and report generation, reducing repetitive manual work. Users can also simulate portfolio performance under adverse scenarios, such as geopolitical events, with real-time loss estimates.
Rajiv Bhat, CEO of martini.ai, explains that the technology helps analysts and portfolio managers work faster and access new analytical tools that were previously unavailable. This expands their capabilities without replacing their judgment or experience.
What This Means for Managers
- AI research tools significantly reduce time spent on data gathering and initial analysis.
- They free analysts and managers to focus on client engagement and strategic decisions.
- Firms may adjust hiring plans, especially for junior roles focused on routine tasks.
- Custom and third-party AI tools offer options for different firm sizes and specialties.
Managers should consider how AI can enhance team productivity without compromising the human expertise essential for investment decisions. For those interested in developing AI skills relevant to management and finance, exploring targeted training courses can be valuable.
Learn more about practical AI applications and training options at Complete AI Training.
Your membership also unlocks:
