With technology, there’s always excitement about the “shiny objects” on the horizon, such as analytical tools that can extract insights from both structured and unstructured data. But before you can fully take advantage of those powerful innovations, you need to get your overall data management architecture right. A firm’s data foundation is critical to facilitating data-powered business use cases and realizing tangible business value.
For asset management firms, the ability to use emerging technologies like AI, advanced analytics and machine learning at scale—along with harnessing new sources of data—is key to driving innovation, growth and increased efficiency.
- Pursue analytics more aggressively. According to cross-industry Forrester research, between 60 and 73 percent of all data within an enterprise goes unused for analytics. This is clearly a missed opportunity. Analytics technologies and capabilities could allow asset managers to access previously unattainable data sets, helping them to feed their analytics and research platform to experiment and validate investment ideas, recommendations and decisions.
- Use machine learning to help clean up data by conforming and normalizing it. Machine learning can help you look at how you’re applying a rule to a certain data element. Then the application can go out and highlight what it thinks are other examples of that data that may have been inconsistently labeled.
- Leverage artificial intelligence to enhance the investment decision process by acting within parameters designed to identify buy/sell opportunities and populate trade orders within order management systems based on criteria that align with the investment strategy of the portfolio. With a strong data strategy and architecture in place, Accenture research shows that firms could adopt a comprehensive range of AI solutions across the asset management lifecycle and could achieve an uplift of up to 300 basis points (bps). Additionally, our latest research also found that the use of AI is becoming widespread with 85% of asset managers actively applying analytics and AI in their investment process.
The power of analytics and AI