Souvik Das moves purposefully through his Chicago office, driven by a clear mission. As Clearwater Analytics’ chief technology officer, he has observed institutional investors fundamentally altering the way they engage with asset managers. Around two out of five asset managers now receive regular inquiries from clients about their AI implementation. A conversation that once seemed niche has now become a critical compliance standard.
The research conducted by Clearwater Analytics presents concrete evidence of this transformation. When asked if clients will expect a meaningful budget for AI, 90 percent of asset managers answered in the affirmative. Within that group, 43 percent revealed that a quarter to half of their clients already ask about AI strategies. Additionally, 34 percent anticipate a significant increase in demand for AI capabilities within the next three years.
Key insights from the data
Eighty-five percent of asset managers report that their clients view their use of AI in a positive light. However, not all managers feel equally confident. Only 2 percent believe they are lagging behind in AI adoption, while another 13 percent feel they are ahead of their peers. This suggests a growing confidence in the capabilities of AI, yet it underscores the need for continuous innovation and adaptation to stay competitive.
Where does the real value of AI lie for clients? The priority is on data governance, accuracy, and enterprise security, rather than on automation. Ninety-one percent of asset managers rate agentic AI as important or critical. The emphasis is not on flashy tools, but on systems that can autonomously manage complex, multi-step tasks with minimal human supervision. These systems are crucial for ensuring the reliability and integrity of data, which is essential for maintaining client trust.
Current expectations and client needs
The features of AI that generate the most satisfaction among clients are AI-powered support and Q&A systems. Automated reporting and personalization at scale also rank highly. However, the most significant change lies in evolving expectations — 57 percent of managers see demand for AI increasing, while 34 percent foresee a dramatic rise in its importance. This indicates a clear shift toward expecting more from asset managers in terms of transparency and responsiveness.
Das explains: AI is transforming quarterly meetings into continuous data exchanges. Real-time insights, explainable decision-making, and tailored solutions are now essential. What initially began as a tool for performance improvement has become the foundation for building client trust. This transformation is not just about technology; it is about redefining the relationship between asset managers and their clients.
Looking ahead to the future
The Clearwater Analytics study highlights a market in which AI competence is becoming the new standard. Firms that fail to demonstrate progress in AI integration risk losing institutional mandates. The pressure is not simply about allocating financial resources to AI — it's about delivering results in transparency, speed, and customization. As the industry evolves, the ability to adapt and innovate will separate the leaders from the followers.
With 34 percent expecting a significant surge in demand over the next three years, the coming period will distinguish leaders from those who fall behind. And in this evolving landscape, falling behind means risking loss and irrelevance. The research not only reflects the current state of AI in asset management but also sets the stage for future developments that will shape the industry's trajectory for years to come.