By Tamas Mark, Global Head of Real Assets, and Tanuja Adiani, Managing Director
Seven years ago, the investment industry stood on the edge of a technological evolution. Today, it’s clear – we’ve crossed that threshold. Data analytics is no longer a “nice to have” for fund and asset managers; it is the very backbone of performance, compliance, transparency, and investor confidence.
The pace of change is relentless. Investment management firms that fail to keep up with technological advancements risk being left behind. It’s not just about implementing technology; it’s about investing in people, in training, and in transforming operations to meet the growing expectations of investors by propelling reporting tools that serve growth.
Worldwide spending on artificial intelligence (AI) and related IT and business services will more than double by 2028, reaching $632 billion, according to research by the International Data Corporation. One indication of the potential return on this investment comes from PwC, which estimates that AI alone could contribute up to $15.7 trillion to the global economy by 2030 – more than the current combined economic output of China and India.
Advancements in large language models (LLMs), AI and machine learning tools are fuelling much of this acceleration. In the investment management world, the right technologies now enable firms to consolidate millions of data points (from funds across multiple strategies and systems) into a single, trusted, “golden source of truth” for generating usable, accessible insights.
Finding problems to solve
Despite these opportunities, asset and investment managers continue to spend precious human resource time on processes that machines can handle. Administrative tasks such as collecting, inputting, initial review, manipulating, and distributing data are prime candidates for automation.
Take the real estate fund management sector, for example. Each fund may hold details on hundreds, if not thousands, of leases. Tracking these rental agreements and revenue streams is a massive burden on human resources. Here are some key areas where data analytics can offer meaningful impact:
- Predictive analytics and dashboards that help investors forecast property values, market trends and rental yields
- Risk modelling enhanced by data-driven insights into market volatility, interest rate changes and macroeconomic indicators
- Portfolio optimisation based on real-time data, improving asset allocation and returns
McKinsey estimates the use of generative AI alone could generate $110 billion to $180 billion in value for the real estate industry. Use cases include scanning lease agreements for upcoming rental renewals or key clauses, and recommending operational efficiencies to property managers. The consulting firm said it had seen real estate companies gain a 10% boost to net operating income by using AI tools.
Furthermore, much of the current data processing remains backward-looking. With modern AI-powered tools, firms can now create sophisticated, forward-looking models and forecasts, enabling proactive decision-making.
Already, companies say they see the benefits of utilising AI-type data products. Respondents to a March 2025 survey by McKinsey reported an increase in value creation and improvement in workflow organisation by teams that used AI.
Similarly, a PwC survey of asset and wealth managers revealed that 80% of respondents viewed disruptive technology as a driver of revenue growth. Seven in ten said such innovations were central to product and service development across all business lines.
A clear case for investment
It may sound like a truism to say firms must invest in technology, but it’s no less accurate for being obvious. Investment managers who fail to embrace digital transformation risk losing high-value talent to forward-thinking competitors and high-quality institutional capital to rivals who deploy technology to provide transparency.
Now is the time to rethink the operating model – by truly understanding how finance, operations and investor servicing are dimensions of common data points. Understand the data from a 360-degree point of view and it’s no longer just reporting; it’s empowering analysis, predictability and benchmarking.
Ensuring optimum results: speak to IQ-EQ
If the facts have urged you to consider what a data-driven reality looks like, there’s something to consider before all else – before the operating model has been analysed for current gaps and future growth; before the right tools for the right tasks are finalised; and before budgets and resources are assigned to the process and perspective makeover.
Consider what is arguably the most significant factor contributing to the success of your transformation: finding the right partner offering depth of experience and the ability to scale.
At IQ-EQ, we’re not just a service provider, we bring solutions from idea to execution. Get in touch today to find out more:
