Assets under Management (AuM) in the Middle East region surged by 13%, rising from $2 trillion in 2022 to $2.3 trillion in 2023, according to BCG’s 2024 Global Asset Management Report.

Globally, in 2023, AuM surged by 12% to nearly $120 trillion.

BCG’s report, AI and the Next Wave of Transformation, analyzed how artificial intelligence (AI) is set to reshape the asset management industry. Those surveyed underscored the importance of a shift towards AI-driven management.

“After a year marked by significant advancements in generative AI, we are starting to see its effects across industries,” says Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG. 

“As the asset management sector faces growing structural challenges, embracing artificial intelligence is no longer optional but necessary for maintaining competitiveness,” he added. 

According to the report, this requires a well-executed strategy within productivity, personalization, and private markets.

AI enhances productivity in asset management by automating and optimizing routine tasks and complex processes. It also facilitates faster decision-making and improves operational efficiencies across various functions of asset management firms.

Personalization is also improved with AI adoption. AI tools can analyze large datasets to understand and accurately predict client needs and preferences. At the same time, AI-driven tools can manage personalized portfolios at scale, offering individualized investment solutions that were previously only feasible for high-net-worth individuals or institutional clients. 

Lastly, AI can transform private market deal sourcing and due diligence processes. By processing and analyzing vast amounts of unstructured data, AI can identify investment opportunities faster and assess potential deals with greater precision.