The applications of AI have been growing at a rapid pace in almost all sectors of the economy. Among various important applications of AI, asset management is considered a game changer. From financial institutions to automotive and oil & gas companies, several industries are leveraging AI for asset management. Banks and fintech companies are already utilizing voice assistants, chatbots, etc., to manage customer interactions and handle their queries. AI-based solutions are also being employed for automated claim processing and settlementand for fraud detection.
Similarly, AI-powered predictive asset management software is being utilized by oil & gas companies, as these companies frequently face the problem of unexpected breakdowns and replacements. So, there exists a huge demand for AI for asset management in the oil & gas sector. Automotive manufacturers are also leveraging AI for asset management to track the downtime of vehicles. For example, General Motors has deployed a cloud-based image classification tool on 7000 robots, in orderto detect issuesbefore theiractual occurrence. This helps reduce unplanned production delays and thus, improvesproductivity and efficiency.
The global AI in asset management ecosystem was valued at USD 309.3 million in 2018 and is projected to grow at a CAGR of 17.6% over the coming years. The growth of the market will be mainly driven by increasing implementation of AI in asset management, as it helps provide better and faster services to clients. AI-based predictive analytics helps organizations analyze unexpected breakdowns.
In the financial sector, AI in asset management has found applications in areas like personal financial management, fraud detection, and investment banking. Technologies such as AI, machine learning, and predictive analytics help financial institutions manage assets efficiently while meeting the expectations of their customers. This eventually translates into enhanced business operations and process automation and better customer experience.
The adoption of AI in the wealth management sector has led to the emergence of digital wealth management platforms and services, which help reduce the time required in the traditional wealth allocation process. Apart from this, the trend of data-driven financial decision and increasing adoption of blockchain, big data analytics, etc., in the financial services are expected to play an important role in driving the growth of the global AI in asset management ecosystem.
Among various regions, North America dominated the global market in 2018. This regional market is expected to maintain its dominance in the coming years as well due to factors such as increasing number of connected devices, growing number of internet users, and increasing investments in AI. The Asia-Pacific region is also expected to register impressive growth and grow at the fastest pace over the next few years.
The major market players operating in the global AI in asset management ecosystem are, Google, Microsoft, Infosys, IBM, Apple, Amazon, Genpact, and Lexalytics, among others. These market players are employing strategies like mergers & acquisitions, partnerships, and product expansions, among others, to increase their market share.
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