Rapid front-office AI adoption reshapes technology priorities across the buy-side
Artificial intelligence is quickly becoming a core operational tool for investment managers, suggesting a major shift in how portfolios are managed and investment decisions are supported.
A new global study from SimCorp’s InvestOps Report finds that AI has moved beyond pilot projects and is now firmly embedded in front-office activity at a majority of buy-side firms. The research, based on a survey of 200 executives at asset managers, pension funds and insurance firms worldwide, shows that 70 per cent of investment managers are using AI to support front-office functions.
This represents a sharp acceleration from the previous year, when only a small fraction had active AI deployments, suggesting that firms are now prioritizing AI as a business-critical capability rather than an experimental technology.
“AI adoption has dramatically shifted from pilots to business-critical applications in the front office,” said Peter Sanderson, SimCorp’s CEO. “The advancements in AI can deliver the most value for investment professionals to enhance decision-making and efficiency when it is underpinned by a centrally governed and unified data layer.”
Technology strategy priorities are also evolving. Innovation has overtaken operational efficiency and cost control as the leading driver of technology and operations investment decisions. More than half of surveyed firms cited innovation as their top focus, while fewer pointed to efficiency gains or cost management as primary goals. This change highlights a broader recognition that competitive advantage increasingly depends on technological differentiation.
Firms are also reassessing their technology infrastructure to better support AI. Consolidating platforms and vendors and modernizing data architecture are now high on the agenda, reflecting the need for integrated systems capable of feeding reliable data into AI models at scale.
As reliance on AI grows, investment managers are placing greater emphasis on the stability and reliability of technology partners. Vendor stability has become the leading consideration when selecting AI solutions, ahead of factors such as flexibility, innovation access and return-on-investment measurement. Strong data governance and cybersecurity frameworks are also top of mind as firms handle sensitive investment data within AI-driven systems.
The study also points to rising interest in applying advanced technology to alternative investments and private markets, where data complexity and limited transparency create opportunities for AI-powered tools.
