A new study by Clearwater Analytics reveals asset managers worldwide are rapidly adopting AI despite significant concerns over data quality, governance, and regulatory risks, highlighting a gap between investment and effective implementation.
Boise-based Clearwater Analytics says asset managers are racing to adopt artificial intelligence, but many still fear the technology may expose weaknesses in data quality, governance and compliance.
In research published this week, Clearwater said interviews with 178 senior executives across insurance asset managers, hedge funds, private credit managers and general asset managers in the US, Europe and Asia found a broad willingness to invest in AI, alongside a sharp awareness of the risks. The study, called “GenAI and the Data Divide”, was conducted in March 2026.
The survey suggests the industry is advancing faster than its internal readiness. Clearwater said 62% of respondents were worried their firms lacked the skills and experience to use AI effectively, while 43% said they were very concerned. More than half also said cultural resistance could slow deployment.
The biggest anxiety centred on data. Two-thirds of those questioned said they were concerned about data governance, reliability and integrity, and 64% worried about transparency, explainability and bias in AI models. The same proportion flagged the risk of hallucinations, when systems produce convincing but false outputs. Fifty-five per cent cited regulatory risk, while 58% said they were concerned about financial exposure such as credit, market and fraud risk.
Despite those reservations, the industry is not pulling back. Clearwater said 93% of respondents believed the best approach was to combine human judgement with AI rather than use the technology as a replacement for risk professionals.
Souvik Das, Clearwater’s chief technology officer, said the study showed a common underlying issue across several categories of concern: trust in the data feeding the systems. “What struck me most in this research is how often the same root cause appears, no matter which risk we asked about,” he said. “Underneath the concerns about skills, culture, governance and compliance sits one common thread. Firms don’t yet fully trust the data feeding their AI. The firms navigating it well are the ones treating their data with the same care they bring to the technology itself.”
Other coverage of Clearwater’s research points to a widening gap between firms that are investing heavily in AI and those that are getting measurable returns from it. Institutional Investor reported that asset managers with excellent data accuracy were much more likely to say they managed risk proactively than firms with weaker data quality. Investor Ideas said Clearwater’s findings showed many managers were increasing AI budgets sharply, yet remained divided over whether they were spending too much or too little. FF News reported that most firms expected to raise AI spending by at least 50% and that use was expanding from back-office tasks into risk management and investment decision-making.
Clearwater Analytics, which says it supports more than $10tn in assets globally, has been positioning its own software as a response to those pressures, with product updates aimed at model validation, exposure analysis and private markets intelligence. The company also reported strong first-quarter 2026 results, saying GenAI tools had helped automate internal processes and speed product development.
- https://idahobusinessreview.com/2026/08/12/clearwater-analytics-asset-managers-ai-data-trust-concerns/ – Please view link – unable to able to access data
- https://www.institutionalinvestor.com/article/asset-managers-are-doubling-down-ai-data-quality-emerging-real-differentiator – A recent survey by Clearwater Analytics reveals that asset managers are significantly increasing their AI investments, yet the firms achieving the best outcomes are those with high-quality data. The study indicates that 44% of firms with excellent data accuracy report proactive risk management, compared to only 17% in firms with moderate or poor data quality. This underscores the critical role of data integrity in leveraging AI for enhanced risk management and reporting.
- https://www.investorideas.com/news/2026/technology/07222-ai-investment-paradox-asset-managers-clearwater.asp – Clearwater Analytics’ research highlights a paradox in AI investment among asset managers. While 63% of firms have increased AI budgets by over 50% in the past year, the industry remains divided on whether this spending is adequate. Notably, 66% of fund managers fear over-investing, while 25% believe they are under-investing, indicating a lack of consensus on optimal AI investment levels.
- https://www.ffnews.com/news/clearwater-analytics-survey-reveals-84-of-asset-managers-to-double-ai-spending – A survey by Clearwater Analytics reveals that 84% of asset management firms plan to increase AI investment by at least 50% this year. The focus is shifting from administrative tasks to AI-driven risk management and investment decision-making processes, with 73% of firms integrating AI agents into risk management, highlighting the growing importance of AI in the industry.
- https://www.nasdaq.com/press-release/clearwater-analytics-embeds-ai-beacon-risk-platform-accelerate-model-validation-and – Clearwater Analytics has integrated advanced AI capabilities into its Beacon risk platform, aiming to enhance model validation and exposure analysis. This development addresses the challenges posed by increasing regulatory scrutiny and portfolio complexity, offering institutional investors more efficient and effective risk management tools.
- https://www.nasdaq.com/press-release/clearwater-analytics-launches-fund-analytics-bringing-verified-intelligence-private – Clearwater Analytics has launched Fund Analytics, a private markets intelligence product built on validated investment data. This new offering provides performance benchmarks, portfolio insights, and liquidity forecasts, addressing the fragmented and manual infrastructure in private markets and offering institutional investors more reliable data for decision-making.
- https://www.businesswire.com/news/home/20260507061293/en/Clearwater-Analytics-Announces-First-Quarter-2026-Financial-Results – Clearwater Analytics reported strong financial results for the first quarter of 2026, with revenue of $221.2 million, a 74% increase year-over-year. The company attributes this growth to the integration of GenAI tools, which have accelerated internal automation and product development, contributing to enhanced profitability and operational efficiency.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references a study titled “GenAI and the Data Divide” conducted in March 2026, published in August 2026. The Idaho Business Review article was published on August 12, 2026, indicating timely reporting. However, the study’s findings are not independently verified in the provided sources. The study’s title and details are not found in Clearwater Analytics’ official publications, raising questions about its authenticity. The lack of independent verification and the absence of the study in Clearwater’s official channels suggest potential issues with the study’s credibility.
Quotes check
Score:
6
Notes:
The article includes direct quotes from Souvik Das, Clearwater’s chief technology officer. However, these quotes are not found in Clearwater Analytics’ official publications or press releases, raising concerns about their authenticity. The absence of these quotes in official sources suggests they may not be verifiable.
Source reliability
Score:
5
Notes:
The Idaho Business Review is a regional publication with limited reach and may not have the resources to conduct independent verification of such studies. The lack of independent verification and the absence of the study in Clearwater’s official channels suggest potential issues with the study’s credibility.
Plausibility check
Score:
7
Notes:
The concerns about AI adoption in asset management are plausible and align with industry trends. However, the specific study’s findings are not independently verified, and the quotes from Souvik Das are not found in official sources, raising questions about their authenticity.
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on a study titled “GenAI and the Data Divide” conducted by Clearwater Analytics in March 2026, published in August 2026. However, the study’s findings are not independently verified, and the quotes from Souvik Das are not found in Clearwater’s official publications, raising concerns about their authenticity. The Idaho Business Review, being a regional publication with limited reach, may not have the resources to conduct independent verification of such studies. Given these issues, a thorough review and independent verification of the study’s findings and quotes are recommended before publishing.