Asset managers say that AI could improve their job security

AI isn’t just going to make an enormous difference to the asset management industry – it is already having a transformative effect on businesses today. And not for all the ‘wrong’ reasons, either.

There are good reasons for people to be concerned about the impact of AI. Throughout human history, a degree of turbulence has followed the introduction of new technologies. While the new ways of doing things may be more efficient, more productive and even save money, people worry they will become redundant and lose their jobs.

Reasons to be cheerful

Yet senior executives at a broad spectrum of fund managers including insurance asset managers, hedge funds, private markets specialists, and general asset managers, are overwhelmingly positive about the benefits of AI. Not only do they see the potential for improving operational effectiveness, but almost two thirds (61%) of them believe it will enhance their job security, according to Clearwater Analytics’ latest research.

Of course, they are fully aware of the concerns people have that AI technology could reduce work for humans. And more than a quarter (28%) concede AI will reduce job security, with 1% convinced it will even replace their role completely.

It’s already starting to pay off

However, the efficiency gains of AI are already delivering tangible and measurable results, say the senior executives. Six percent of managers report that the impact of AI has resulted in them saving between one and 30 minutes every week, while one in three saves between 31 and 59 minutes.

Almost half (45%) report efficiency gains of between one and two hours per week, with 16% saving between three and four hours. That’s an awful lot of productivity that can be put to good use.

The research suggests that instead of replacing human talent, AI is being used by managers to make deliberate investments to ensure their people evolve alongside the technology. Seven in 10 firms are providing AI literacy and awareness training, while 63% are investing in internal mobility and redeployment pathways, actively repositioning talent rather than reducing it. Almost half (49%) are redesigning roles specifically to integrate human and AI collaboration, and 47% are hiring talent with AI-complementary skills.

There’s still a place for human talent

Taken together, these findings paint a picture of an industry that sees AI not as a substitute for human judgement, but as a platform for enhancing it. Job security is traditionally grounded in being hard to replace. Those firms investing in their people as AI becomes part of the everyday work are confident that it will deliver a return that doesn’t simply mean a cut in costs or headcount.

Improved accuracy and reporting speeds will save time spent on complex and repetitive tasks. This will release staff to offer better, responsive and valuable support to their clients. All stakeholders, including regulatory bodies, will get a better version of the firm, which is better able to satisfy the increasing demands being made of it.

Now, isn’t that the kind of revolution you would want to embrace? Clearwater AI embeds AI directly into the investment workflow, so teams can surface insights, ask questions of their data, and work more efficiently across complex portfolios.

To see the full data on how asset managers view AI and job security, download the report, GenAI and the Data Divide.