AI adoption across funds industry: Driving faster processes and greater cost efficiency

Artificial intelligence is reshaping the funds industry, with generative AI streamlining document preparation and agentic AI automating end-to-end workflows, particularly in legacy systems. Chris Burge of Spark Venture Funding notes AI’s growing role in investment documentation, regulatory compliance, due diligence, and internal processes, reducing administrative burdens and improving efficiency. Generative AI is already cutting costs by automating document creation and review, while advanced AI tools enhance decision-making by processing large datasets and structured assessments. Burge emphasizes AI’s value lies in structuring work, not replacing human judgment, with deeper adoption expected to further trim industry costs in documentation-heavy and compliance-driven areas. A PwC report on assets under management (AUM) warns shrinking margins as AUM grows, prompting asset managers to prioritize AI integration to future-proof operations. Ray Daly, PwC Ireland’s director of asset and wealth management, stresses the need for integrated AI strategies across businesses to boost portfolio performance, client engagement, and profitability. BlackRock’s August 2025 report confirms AI’s shift from experimental to core structural use, embedding specialized models into market and equity strategies. The firm highlights AI’s ability to analyze themes—from secular trends to emerging forces—to inform investment decisions, though tools like Thematic Robot still combine human insight with AI for optimized equity baskets. While AI drives efficiency, industry experts agree human oversight remains essential, ensuring balanced decision-making in evolving financial workflows.