Fund Managers Embrace GenAI to Improve Marketing Campaigns...
Adoption of generative artificial intelligence (genAI) is increasing among fund managers, impacting functions such as portfolio management, fund administration, and marketing. In the realm of marketing, genAI is proving a game changer, enhancing processes and experiences through predictive analytics, automation, and data-driven insights.
These innovations are leading to more effective messaging, stronger investor engagement, and improved risk controls, according to new research by SG Analytics, a global research and data solutions provider. The research, based on a survey of 80 fund management firms, revealed that a growing number of fund management firms are embracing AI, leveraging the technology in a variety of ways to enhance marketing strategies and operational efficiency.
Adoption Patterns
42% of respondents identified automated content creation as the primary application, while 36% pointed to the use of predictive analytics to monitor and respond to market trends. 13% highlighted customer sentiment analysis, and 7% mentioned chatbots for customer service. The study highlights distinct adoption patterns among different types of financial firms.
Market Trends
Asset management firms are the biggest adopters of genAI for chatbots, predictive analytics, and automated content creation. Wealth management firms, on the other hand, are particularly advanced in the use of genAI for customer segmentation and sentiment analysis. Fund management firms show a preference for automated content creation and predictive analytics, indicating a strategic focus on optimizing marketing campaigns.
Confidence in AI
Most respondents expressed strong confidence in the potential of AI to enhance the effectiveness of marketing content across various functions. 67% believe that AI can significantly improve campaign management, while an overwhelming 97% believe that genAI can enhance personalized marketing and tailor content to individual preferences.
Concerns and Hurdles
Despite enthusiasm for genAI, concerns related to data security, high implementation costs, and lack of in-house expertise were highlighted. Asset management firms cited data privacy and security as their primary concern, while wealth management firms expressed the most concern about the high cost of implementation. Organizational resistance and technical complexity were also identified as hurdles to genAI implementation.
Rapid Adoption
Beyond marketing applications, genAI is seeing rapid adoption across the broader wealth and asset management industry. A survey conducted by EY-Parthenon revealed that an overwhelming 98% of respondents had either already invested in genAI, were planning to invest, or expressed strong interest in learning more about the technology.
Firms cited productivity enhancements, client experience enhancements, cost savings, and service quality improvements as key drivers for adopting genAI. Despite challenges, the potential of genAI to transform marketing campaigns and improve operational efficiency is evident in the industry's increasing adoption and investment in this technology.
