With advisors and broker-dealers growing their use of artificial intelligence, sparking warnings about transparency from the SEC, what about its use in other parts of the investment ecosystem?
A new report highlights increasing usage and interest in AI from buy-side equity trading desks with asset managers seeing the potential for improved performance and productivity through high-speed technology in their processes.
The Crisil Coalition Greenwich study asked North American buy-side traders about how they use AI and found 15% already incorporate internal AI tech into their trade execution workflow, while a further quarter plan to do so within the next 12 months.
Most respondents (80%) say that algorithm optimization will have significant impact from AI.
“Optimizing trading algorithms in real time is the holy grail of AI for buy-side traders,” says Jesse Forster, Senior Analyst at Crisil Coalition Greenwich Market Structure & Technology and author of Great expectations for AI in equity trading. “But is also risky proposition requiring a significant investment of time and money, and one that only a handful of firms are equipped to handle.”
However, the benefits also include processing post-trade transactional cost analysis and 60% of study participants believe AI will have a meaningful influence in venue selection, and half expect AI to have a sizable impact on broker and strategy choices.
But while investment and time is required to ensure implementation of AI within trading desks it done to the optimum level, especially given a lack of quality data, firms may not see the ROI that investors expect.
“However, with careful planning, investment and collaboration, we believe that AI can play a transformative role in equity trading execution, enabling buy-side traders to make more informed decisions and achieve better outcomes,” concludes Forster.
InvestmentNews recently spoke with Mark Trousdale, chief growth officer at Communify Fincentric, a firm started by former InvestCloud leaders and now working with over 90% of leading online brokers in the US, about the ‘game-changing potential’ of deterministic AI.
After a two-year period of inversion, the muni yield curve is back in a more natural position – and poised to create opportunities for long-term investors.
Meanwhile, an experienced Connecticut advisor has cut ties with Edelman Financial Engines, and Raymond James' independent division welcomes a Washington-based duo.
Osaic has now paid $17.2 million to settle claims involving former clients of Jim Walesa.
Oregon-based Eagle Wealth Management and Idaho-based West Oak Capital give Mercer 11 acquisitions in 2025, matching last year's total. “We think there's a great opportunity in the Pacific Northwest,” Mercer's Martine Lellis told InvestmentNews.
Osaic-owned CW Advisors has added more than $500 million to reach $14.5 billion in AUM, while Apella's latest deal brings more than $1 billion in new client assets.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
