This is article number 2 out of 3 where we cover practical applications of the AI technology within the investment management industry.
Reminder on Article #1: Efficiency gains using AI
Just to remind all of us, the first article covered the efficiency gains that we can generate using AI. This included the ability to quickly retrieve information using Natural Language Processing (“NLP”), as well as the ability to quickly transform your content (meeting notes, questionnaires, DDQ Reponses) by either summarising or formalising it.
Article #2: Building instant Analytics using your data
In this article, I will delve into how AI can help asset allocators and asset managers build instant insights and analytics on their data, therefore being able to better understand their universe of investments or clients and make more informed decisions.
Asset allocators
Many of our clients use the Dasseti platform (and I was one of them until not so long ago!) to store information about their investments across multiple asset classes. This data is either captured through a data collection process directly from asset managers (by sending questionnaires) or populated directly by our clients (including their analyses, reports, findings etc).
1. Identify Industry trends
With the process described above, it doesn’t take too long before this information can be used by our clients to identify industry trends such as:
- Fee increase
- More aggressive use of lending facilities by GPs
- Higher percentage of GPs extending the life of their funds
- More frequent regulatory investigations related to performance disclosures etc...
2. Identify Standard vs Unusual practices
Similarly, this data can also be used to identify standard practices as well as identify those managers that may be outliers. For example, this could help you identify managers that are not:
- Using front to back-office systems
- Using a third-party valuation agents
- Using an independent administrator
Building Insights using AI
That’s quite difficult without AI! One option would be to build your own Analytics using any of the Business Analytics tool that exist. This requires time, expertise and a well-structured dataset. And even with all of this, you may still lack the flexibility of building instant analytics.
That’s where AI can help. With data automatically structured at source in Dasseti, AI will allow our users to 1. simply query the data using NLP and 2. identify trends and standard practices. Cherry on the cake, the AI will also generate an answer to your questions by using the data contained in your dataset! Nice right?!