CFA Institute has published a new resource designed to assist asset managers and investment professionals integrate artificial intelligence into their decision-making processes. The report, AI in Asset Management: Tools, Applications, and Frontiers, provides practical examples and governance frameworks for responsible AI adoption across the investment sector.
AI integration
The publication focuses on concrete use cases where investment teams are deploying AI and machine learning technologies to improve performance, risk oversight, and operational efficiency. It sets out methods for embedding AI into areas such as portfolio construction, risk analysis, and trading, with a strong emphasis on transparency and accountability.
The resource draws on contributions from a group of industry and academic experts in AI and data science, delivering guidance that is relevant to portfolio managers, quantitative analysts, and institutional leaders. It aims to move practitioners from theoretical interest to real-world implementation, citing instances in which AI models supplement traditional approaches to investment.
“Artificial intelligence is challenging us to rethink long-held assumptions about how we create, measure, and deliver value. By moving beyond theory to real-world implementation, AI in Asset Management shows how AI can supplement professional judgement,” said Mona Naqvi, Managing Director, Research, Advocacy, and Standards, CFA Institute.
Ethical focus
Central to the report is a framework for ethically deploying AI. It outlines principles for interpretability, scalability, and governance, ensuring that technology is harnessed in ways that safeguard investor trust and respect fiduciary obligations. The guidance also addresses how to integrate human oversight with automation, recommending robust checks to mitigate risks associated with advanced algorithms.
The volume provides insights into managing new risks posed by complex AI-enabled models. It offers practical advice for risk officers and senior leaders to assess and manage predictive systems in line with industry standards. The findings are tailored for diverse functions within asset management, helping practitioners identify where AI offers value beyond traditional quantitative methods.
Upskilling required
CFA Institute highlights the need for continuous skilling among investment teams as AI adoption accelerates. The report recommends cross-disciplinary collaboration between portfolio managers, risk experts, and data scientists to strengthen implementation strategies. It also encourages organisations to support learning initiatives, ensuring staff adapt to technological shifts in investment practice.
“We seek to equip investment professionals with the knowledge and ethical frameworks needed to integrate AI responsibly. CFA Institute has long helped the profession recalibrate through change, ensuring that new technologies are applied based on ethical frameworks and human judgment. The examples in this volume invite practitioners to think critically and experiment with these tools, while keeping ethics and investor trust at the core,” said Naqvi.
Sector-wide guidance
AI in Asset Management covers several aspects of AI, including deep learning applications for trading and risk management. It examines ways to augment data-driven decision-making while retaining a focus on human values and professional standards. Contributors include a range of leading academics and practitioners with expertise in the application of AI within finance.
The report is part of CFA Institute’s ongoing effort to address the challenges and opportunities presented by digital technologies in global finance. Previous research by the organisation has covered issues such as explainable AI, synthetic financial data, and the ethical dimensions of digital transformation in asset management.
“Artificial intelligence is a powerful tool, now reaching every corner of finance. Our task at CFA Institute is to guide that transformation with the necessary skills and integrity, ensuring human values stay at the center and that professionals have access to burgeoning knowledge,” said Naqvi.
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