3 common applications of AI in asset management

Artificial intelligence (AI) is undeniably rising in popularity. Proven to be a powerful technological tool today, AI is disrupting a number of existing industries, with the financial services sector being one of them. Slowly taking over the investment industry, AI has now been widely applied by asset managers in risk management, portfolio management and trading, among other areas. This article will discuss how AI is leveraged in asset management.

‍

1. Portfolio management

There are several financial assets covered by a portfolio, including mutual funds, stocks, commodities, exchange-traded funds, to name a few. With the risk of diversification possibly being involved in different asset classes, the decisions to hold, acquire or dispose of the assets at the most profitable time can be affected. As wealth management solutions advance, investors can easily gain financial insights and receive valuable analytics information for better decision making on investments. Accurate and timely investment reporting has always been the priority of most investors. Investors constantly seek financial insights and valuable analytics information to facilitate better decision making on investments. To satisfy their clientele with notably high service benchmarks, some financial planning firms opt for the use of AI-supported SW technology. For instance, Canopy Extract, an AI-backed precision data extraction technology, can be adopted to enable automatic conversion of non-electronic data formats into the desired and electronic data format. The SW technology of Canopy depicts certain tables in PDFs and only extract the relevant information in order to ensure a more accurate and effective analysis. In this case, the logical mapping and grouping between different independent datasets is made possible, helping users to save time and boost the operational efficiencies. With precise investment reporting produced by Canopy Extract, which focuses on AI-backed data aggregation, users are able to make optimal decisions, contributing to profit maximisation. 

‍

• Automated insights 

With the aid of AI components, Canopy Extract helps to generate automated insights for investors. The technology converts non-electronic data formats into the desired and electronic data format, allowing for clients’ easy access to relevant information. 

‍

• Alternative datasets 

Canopy’s SW technology facilitates alternative datasets for better and more efficient analysis by clients. It enables the logical mapping and grouping to take place between different independent datasets. For instance, financial documents with very complex tables and overwhelmingly vast data are simplified in the process.

‍

• Client outreach 

AI components allow Canopy Extract to help its users drive smart client outreach and demand generation, with analytics and organised data sources.

‍‍

2. Estate planning

Back in the days, massive paperwork was often involved in estate planning, slowing down processes. Fortunately, estate planning advisors can now manage their clients’ documents in a streamlined manner, thanks to the emergence of advanced technology like AI, which has been incorporated into most wealth management systems. Canopy also leverages AI components, ensuring proper procession of any incoming data for clients’ use. Canopy Extract software can handle tabular data of any level of complexity, providing a highly personalised analysis and reporting.  

‍

3. Risk management

‍

As more digital solutions emerge in this era, the majority of private wealth management software developers have realised the significant impacts brought by AI on these solutions. Similar to AI, Canopy’s technology allows for effective processing of vast customer and market data, as well as automation of back-end operations, contributing to prediction accuracy. Canopy possesses the capability to create risk dashboards for evaluation of Mark to Market Risk, Value at Risk and Volatility, Sharpe/Sortino Ratio. The results ensure clients have a quick assessment on the risk return regarding a particular investment strategy. By making use of AI components, Canopy assures quality and accurate content input, assisting users in the best way possible.

‍

Conclusion

All in all, the adoption of Artificial Intelligence and its technologies have no doubt been impactful in today’s finance industry. Thanks to big data, machine learning, and GPU processing capabilities, financial data analytics platforms, fintech firms and other financial-related service providers are generating better results in asset and portfolio management, among other areas. This is why we adopt AI components and machine learning in our data aggregation and analytics platform, leading to a prompt, clean and precise data presentation.

‍

At Canopy, we provide a reliable financial data aggregation and analytics platform to our clients. Call us today to get equipped with incredible financial insights through our cutting-edge services.

‍