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Hedge funds are rapidly adopting artificial intelligence and are not afraid to put new tools at their staff’s disposal.
About 86% of hedge funds allow their staff to use some form of generative AI, according to a report by the Alternative Investment Management Association.
Research, technology, compliance and investor relations are key areas likely to be “significantly disrupted” by AI, the report said of 157 hedge fund managers overseeing $783 billion in assets. It added that it was targeted.
read Hedge funds are jumping on the ChatGPT bandwagon – here’s what you need to know
ChatGPT, an AI-powered language model, has become a household name since its release in November 2022. As adoption grows, major financial institutions such as Bank of America, Citi, and Goldman Sachs have banned their employees from using the tool. bloombergreport.
AIMA’s latest research suggests that hedge funds are taking a different approach to these big banks.
Hedge funds aren’t just allowing their staff to use AI tools. They want their future employees to have innovative technology skills.
Around a third of companies say it is important for future hires to have experience using AI tools, and 11% of hedge funds say they already have at least one in-house AI specialist. did.
While hedge funds still primarily use tools such as ChatGPT to summarize documents and conduct research, 20% believe this technology will have a significant impact on portfolio management.
read Hedge fund Bridgewater offers interns $21,000 a month
AI’s potential impact on investment decisions could change the face of the hedge fund industry, which is offering up to $120 million to guide top portfolio managers to better decisions.
Despite progress in adoption, hedge funds face challenges in training staff on AI. Only 15% of hedge funds with more than $1 billion in assets under management are able to train their employees on how to use AI tools, according to an AIMA report. Data security, privacy, and technology drive results. He cited so-called “hallucinations” as the reason. Some of the biggest barriers to adoption.
To contact the author of this article with feedback or news, email Bilal Jafar
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