Simcorp publishes study on front office AI use
20 January 2026 Denmark
Image: weedezign/stock.adobe.com
70 percent of buy side firms are employing artificial intelligence to support their front office function, according to a study commissioned by SimCorp.
This finding marks a sizable increase from last year’s report, which said only about 10 percent of respondents were actively exploring AI tools.
It highlighted at the time 75 percent recognised AI’s potential, but required guidance on how to integrate it.
These findings published in the 2026 InvestOps Report, used responses from 200 executives at asset managers, pension funds, and insurance companies worldwide, who were surveyed by WBR Insights on their technology priorities and challenges heading into 2026.
For the first time in three years, achieving competitive differentiation through innovation (55 percent) has overtaken operational efficiency, (33 percent) and controlling operating costs (44 percent) as the leading driver of technology and operational investments for 2026.
With AI adoption maturing across investment managers, vendor stability (57 percent) ranked as the key criterion when evaluating AI solutions for their investment management - ahead of features.
As proprietary data often flows into AI models, firms require that vendors have robust data governance and cybersecurity in place and are seeking partners capable of supporting these requirements.
Another area poised for innovation is within alternative investments where operational complexity and fragmented data often result in limited automation.
Over the past 12 months, the number of respondents who believe private markets and alternative investments offer the greatest opportunity for technological innovation has grown by 24 percentage points, reaching 51 per cent in 2026 compared to 27 per cent in 2025.
Peter Sanderson, CEO, SimCorp, notes: “AI adoption has dramatically shifted from pilots to business-critical applications in the front office. The advancements in AI can deliver the most value for investment professionals to enhance decision-making and efficiency when it is underpinned by a centrally governed and unified data layer.
“I’m not surprised to see 58 percent of firms in this survey choosing vendor and platform consolidation as a technology initiative. It’s the first step toward bringing all their data together so they can have better control, trust their information, see their portfolio clearly, and use AI to gain insights.”
This finding marks a sizable increase from last year’s report, which said only about 10 percent of respondents were actively exploring AI tools.
It highlighted at the time 75 percent recognised AI’s potential, but required guidance on how to integrate it.
These findings published in the 2026 InvestOps Report, used responses from 200 executives at asset managers, pension funds, and insurance companies worldwide, who were surveyed by WBR Insights on their technology priorities and challenges heading into 2026.
For the first time in three years, achieving competitive differentiation through innovation (55 percent) has overtaken operational efficiency, (33 percent) and controlling operating costs (44 percent) as the leading driver of technology and operational investments for 2026.
With AI adoption maturing across investment managers, vendor stability (57 percent) ranked as the key criterion when evaluating AI solutions for their investment management - ahead of features.
As proprietary data often flows into AI models, firms require that vendors have robust data governance and cybersecurity in place and are seeking partners capable of supporting these requirements.
Another area poised for innovation is within alternative investments where operational complexity and fragmented data often result in limited automation.
Over the past 12 months, the number of respondents who believe private markets and alternative investments offer the greatest opportunity for technological innovation has grown by 24 percentage points, reaching 51 per cent in 2026 compared to 27 per cent in 2025.
Peter Sanderson, CEO, SimCorp, notes: “AI adoption has dramatically shifted from pilots to business-critical applications in the front office. The advancements in AI can deliver the most value for investment professionals to enhance decision-making and efficiency when it is underpinned by a centrally governed and unified data layer.
“I’m not surprised to see 58 percent of firms in this survey choosing vendor and platform consolidation as a technology initiative. It’s the first step toward bringing all their data together so they can have better control, trust their information, see their portfolio clearly, and use AI to gain insights.”
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