How Has the Artificial Intelligence (AI) in Asset Management Market Evolved Historically and What is its Current Size?
The artificial intelligence (ai) in asset management market has seen considerable growth due to a variety of factors.
•There has been an impressive expansion in the size of the artificial intelligence (AI) in asset management market in the past few years. The market is projected to rise from $4.19 billion in 2024 to $5.41 billion in 2025, indicating a compound annual growth rate (CAGR) of 29.0%.
This escalation during the historic timeframe is a result of enhancements in data analytics and the development of quantitative analysis, coupled with the escalating intricacy of financial markets, the requirement for risk management, and the prevalence of algorithmic trading.
What is the Forecasted Market Size and CAGR for the Artificial Intelligence (AI) in Asset Management Market?
The artificial intelligence (ai) in asset management market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for artificial intelligence (AI) in asset management is predicted to witness a massive surge in the coming years, reaching a value of $16.53 billion in 2029, boasting a compound annual growth rate (CAGR) of 32.2%.
The growth during the forecast period can be credited to factors like ai-empowered investment decisions, improved portfolio optimization, the incorporation of alternative data, solutions for regulatory compliance, and global economic irregularities. Key trends expected during this forecast period include interpretable ai models, incorporation of ai in environmental, social, and governance (ESG) practices, predictive analytics, usage of ai in wealth management, and the increased prevalence of robo-advisors.
What Are The Primary Growth Drivers In The Artificial Intelligence (AI) in Asset Management Market?
The growth of artificial intelligence (AI) in the asset management market is significantly boosted by the increasing use of cloud solutions across numerous industries. Cloud solutions involve various online services such as networking, servers, databases, software, and data storage. Asset management companies employ cloud solutions to access AI software, which aids in enhancing asset use and optimizing asset allocation. As per the data from Eurostat, the Directorate-General of the European Commission based in Luxembourg, in December 2023, there was a notable increase in the number of EU enterprises procuring cloud computing services, with 45.2% having done so, marking a 4.2 percentage point growth from 2021. This trend underscored the escalating use of cloud solutions throughout various industries. The countries leading in cloud service acquisition were Finland (78.3%), Sweden (71.6%), and Denmark (69.5%). Thus, the expanding adoption of cloud solutions across various sectors will be a significant growth driver for AI in the asset management market.
What Is The Segmentation Of The Global Artificial Intelligence (AI) in Asset Management Market?
The artificial intelligence (AI) in asset management market covered in this report is segmented –
1) By Technology: Machine Learning And Deep Learning, Natural Language Processing, Predictive Analytics, Other Technologies
2) By Deployment: On-Premise, On-Cloud
3) By Application: Portfolio Optimization, Risk And Compliance, Process Automation, Conversational Platform, Data Analysis, Other Applications
4) By Industry Vertical: BFSI (Banking, Financial Services, And Insurance), Healthcare, Retail And E-Commerce, Media And Entertainment, Energy And Utilities, Automotive, Other Industry Verticals
Subsegments:
1) By Machine Learning And Deep Learning: Supervised Learning, Unsupervised Learning, Reinforcement Learning, Neural Networks
2) By Natural Language Processing (NLP): Sentiment Analysis, Text Analytics, Chatbots And Virtual Assistants, Language Translation
3) By Predictive Analytics: Time Series Forecasting, Risk Assessment Models, Portfolio Optimization, market Trend Analysis
4) By Other Technologies: Robotic Process Automation (RPA), Blockchain Technology, Computer Vision, Edge Computing
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What Emerging Trends Are Shaping The Artificial Intelligence (AI) in Asset Management Market Landscape?
The primary trend gaining traction in the artificial intelligence (AI) in asset management market is product innovation. Predominant companies in the market are targeting the creation of AI platforms with unparalleled proficiency in automating asset management functions, in order to maintain their market standing. For instance, in May 2023, Aisot Technologies, a software company based in Switzerland, initiated a fully automated platform dedicated to active asset management. This tool enables asset managers to design portfolios that mirror customer inclinations in both the stock and cryptocurrency markets, at all times. It further converts investment decisions into fully automated financial products and utilizes AI for their enhancement. The singular attributes of the product encompass AI, neuro-linguistic programming, and quantitative finance. This platform is the maiden globally to cater to both traditional assets and the cryptocurrency market.
Who Are the Key Players in the Artificial Intelligence (AI) in Asset Management Market?
Major companies operating in the artificial intelligence (AI) in asset management market include:
• Alphabet Inc.
• Microsoft Corporation
• JPMorgan Chase & Co.
• Amazon Web Services Inc.
• International Business Machines Corporation
• Deloitte Touche Tohmatsu Ltd.
• The Goldman Sachs Group Inc.
• UBS Group AG
• Salesforce Inc.
• FMR LLC
• BlackRock Inc.
• Infosys Limited
• S&P Global Inc.
• Franklin Templeton Distributors Inc.
• Invesco Ltd.
• Genpact LLC
• Schroders plc
• Man Group Ltd.
• Wellington Management Company LLP
• Janus Henderson Group Plc
• Robeco B.V.
• Bridgewater Associates LP
• Winton Group Limited
• D.E. Shaw & Co.
• AQR Capital Management LLC
• Renaissance Technologies LLC
• Dimensional Fund Advisors LP
• Eaton Vance Corp.
What are the Regional Insights into the Artificial Intelligence (AI) in Asset Management Market?
North America was the largest region in the artificial intelligence (AI) in asset management market in 2024. The regions covered in the artificial intelligence (AI) in asset management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
