The Middle East’s asset management sector experienced a significant surge in 2023, witnessing a remarkable 13% increase in assets under management (AuM), soaring to $2.3 trillion from $2 trillion in 2022. This data, highlighted in Boston Consulting Group’s (BCG) 2024 Global Asset Management Report, underscores the sector’s growing influence on the global stage.
Furthermore, the BCG report, titled “AI and the Next Wave of Transformation,” delves into how artificial intelligence (AI) will reshape the asset management industry. Specifically, it examines the various ways in which AI is poised to revolutionize traditional practices and strategies within the sector. By surveying managers overseeing over $15 trillion in assets, the report reveals a strong consensus on the necessity of integrating AI to remain competitive.
Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, emphasized the critical role of AI, stating, “After a year marked by significant advancements in generative AI, we are starting to see its effects across industries. Embracing artificial intelligence is no longer optional but necessary for maintaining competitiveness.” This assertion highlights the urgency for firms to adapt to AI-driven strategies in order to stay relevant in an evolving landscape. Consequently, companies must swiftly integrate AI into their operations to remain competitive in an increasingly dynamic market environment.
- Productivity: Automating routine tasks and complex processes, AI facilitates faster decision-making and operational efficiencies, optimizing data analysis, trade executions, and reporting workflows.
- Personalisation: Leveraging large datasets, AI can tailor investment products and interactions to individual client profiles, offering personalised portfolios and real-time advice.
- Private Markets: AI accelerates deal sourcing and due diligence by processing unstructured data, improving investment assessments, and managing performance with advanced analytical insights.
Middle Eastern countries are positioning themselves as leaders in AI preparedness, aiming to harness early adoption and innovation. Asset management firms in the region that integrate AI effectively will enhance efficiency, personalize client experiences, and seize new opportunities, contributing to the region’s status as a hub for AI innovation and implementation..
By embracing AI, asset managers in the Middle East can navigate structural challenges, drive productivity, and offer personalized, innovative solutions, ensuring sustained growth and competitiveness in the evolving global market.
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