While artificial intelligence and generative AI has caught fire around the world since late 2022, a new survey from the CFA Institute shows investment firms still have mixed feelings about the technology.
The survey, conducted in February 2024, gathered insights from 200 representatives across investment firms managing assets ranging from under $5 billion to over $100 billion.
A significant 85 percent of respondents believe that standardized ethical guidelines for AI and GenAI are essential, with 82 percent of participants agreeing that the lack of those standards is a barrier to more rapid adoption of these technologies.
“Increasing accessibility to large language models is rapidly adding to the pace of the AI-led revolution of the investment industry,” Margaret Franklin, president and CEO of the CFA Institute, said in a statement. “Many leading organizations have expertise with these tools, but industry-wide we see an unsettled picture.”
Attitudes toward AI and GenAI were mixed as two-thirds (68 percent) of respondents reported a sense of curiosity among their workforce, while another 60 percent detecting anxiety. Meanwhile, nearly half of respondents (48 percent) said their firms were resistant to the technology.
When asked what it will take to kickstart adoption, employers in the investment industry emphasized the need for training and upskilling, with 70 percent saying enhanced education on regulatory compliance and risk management is preferred or essential. Meanwhile, 47 percent of the firms surveyed admitted they were unprepared for potential regulatory shifts around AI and GenAI.
“Employers tell us they need best practices, guardrails, and standardized policies to help their teams move safely into the new AI plus HI [human intelligence] era,” Franklin said. “Further, the absence of standards and concerns around data privacy may be slowing down AI adoption.”
When it comes to roadblocks and impediments to AI and GenAI deployment, one-sixth of employer firms agreed data privacy and security posed the biggest challenge. Another 13 percent pointed to a lack of knowledge and tools, while 12 percent shared a fear of infringing on copyrights or not following responsible AI practices.
"We’re continually researching how AI and Gen AI are being incorporated into investment roles and the implications for individuals, workflows, and firms," Franklin said. "Our view is that the equation of AI + HI [AI plus human intelligence] works best."
A score is generated to show coverage needs across life insurance, long-term care coverage, retirement income protection, and annuities.
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