A new report reveals that 70% of buy-side firms are now using artificial intelligence in their front office, with a focus on innovation, data governance, and expanding into private markets amidst industry-wide digital transformation.
According to the InvestOps Report commissioned by SimCorp and based on responses from 200 executives at asset managers, pension funds and insurance companies surveyed by WBR Insights, 70 percent of buy‑side firms are now employing artificial intelligence to support front office functions , a marked jump from last year’s finding that roughly 10 percent were actively exploring AI tools.
The report places innovation, rather than purely cost control or operational efficiency, at the centre of firms’ technology agendas for 2026: 55 percent of respondents cited achieving competitive differentiation through innovation as their leading investment driver, ahead of controlling operating costs (44 percent) and operational efficiency (33 percent). Vendor stability emerged as the top criterion when evaluating AI solutions, with 57 percent prioritising supplier reliability over feature sets as proprietary data increasingly flows into models and firms demand rigorous data governance and cybersecurity capabilities.
For the first time in three years, many investment managers are moving beyond pilots. “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,” Peter Sanderson, CEO of SimCorp, said in the company’s announcement. He added: “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.”
The survey also signals a re‑ranking of opportunity areas. Interest in private markets and alternative investments as fertile ground for technological innovation leapt by 24 percentage points year‑on‑year, with 51 percent of respondents in 2026 identifying alternatives as the area offering the greatest scope for automation and improvement, compared with 27 percent in 2025. The report highlights that operational complexity and fragmented data in private markets continue to hamper automation, making them a priority target for investment in data layers and integration.
Those findings sit alongside, and are reinforced by, other industry research showing broad adoption of generative and other AI tools across fund managers. According to research by the Alternative Investment Management Association, a large share of fund managers expect greater use of generative AI in investment processes, and many already report using Gen AI in their workflows, underscoring an industry‑wide move from experimentation to embedding AI in investment activity.
While SimCorp’s report stresses consolidation and data governance as prerequisites for deriving value from AI, last year’s InvestOps analysis emphasised the knowledge gap that previously slowed adoption: 75 percent recognised AI’s potential but wanted clearer guidance on integration. The 2026 survey suggests many firms have now acted on that intention, prioritising standardised data models, common data layers and vendor partnerships capable of sustaining secure, governed AI deployments.
Taken together, the research portrays an industry at an inflection point: firms are committing to innovation as a strategic lever, concentrating on platform stability and data control, and targeting complex areas such as private markets for the next wave of automation and AI‑driven insight.
- https://www.assetservicingtimes.com/assetservicesnews/industryarticle.php?article_id=17579 – Please view link – unable to able to access data
- https://www.simcorp.com/about-us/news/2026/two-thirds-managers-adopt-AI – A SimCorp study reveals that 70% of buy-side firms are employing artificial intelligence (AI) to support their front office functions, marking a significant increase from the previous year when only about 10% were actively exploring AI tools. The study, published in the 2026 InvestOps Report, surveyed 200 executives at asset managers, pension funds, and insurance companies worldwide. The report highlights that achieving competitive differentiation through innovation has become the leading driver of technology and operational investments for 2026, surpassing operational efficiency and controlling operating costs. Additionally, vendor stability is identified as the key criterion when evaluating AI solutions for investment management, with firms seeking partners capable of supporting robust data governance and cybersecurity requirements. The report also notes a growing belief that private markets and alternative investments offer significant opportunities for technological innovation, with the number of respondents who believe this has increased by 24 percentage points over the past 12 months, reaching 51% in 2026 compared to 27% in 2025.
- https://www.prnewswire.com/news-releases/more-than-two-thirds-of-investment-managers-prominently-using-ai-to-support-front-office-simcorp-study-reveals-302662692.html – A global study commissioned by SimCorp reveals that 70% of buy-side firms are successfully employing artificial intelligence (AI) to support their front office functions, a significant increase from the previous year when only about 10% were actively exploring AI tools. The study, published in the 2026 InvestOps Report, surveyed 200 executives at asset managers, pension funds, and insurance companies worldwide. The report highlights that achieving competitive differentiation through innovation has become the leading driver of technology and operational investments for 2026, surpassing operational efficiency and controlling operating costs. Additionally, vendor stability is identified as the key criterion when evaluating AI solutions for investment management, with firms seeking partners capable of supporting robust data governance and cybersecurity requirements. The report also notes a growing belief that private markets and alternative investments offer significant opportunities for technological innovation, with the number of respondents who believe this has increased by 24 percentage points over the past 12 months, reaching 51% in 2026 compared to 27% in 2025.
- https://www.cashmarket.deutsche-boerse.com/cash-de/Informieren/veroeffentlichungen/pressemitteilungen/More-than-Two-thirds-of-Investment-Managers-Prominently-Using-AI-to-Support-Front-Office-SimCorp-Study-Reveals-4910708 – A global study commissioned by SimCorp reveals that 70% of buy-side firms are successfully employing artificial intelligence (AI) to support their front office functions, a significant increase from the previous year when only about 10% were actively exploring AI tools. The study, published in the 2026 InvestOps Report, surveyed 200 executives at asset managers, pension funds, and insurance companies worldwide. The report highlights that achieving competitive differentiation through innovation has become the leading driver of technology and operational investments for 2026, surpassing operational efficiency and controlling operating costs. Additionally, vendor stability is identified as the key criterion when evaluating AI solutions for investment management, with firms seeking partners capable of supporting robust data governance and cybersecurity requirements. The report also notes a growing belief that private markets and alternative investments offer significant opportunities for technological innovation, with the number of respondents who believe this has increased by 24 percentage points over the past 12 months, reaching 51% in 2026 compared to 27% in 2025.
- https://www.simcorp.com/resources/insights/white-papers-and-reports/2026/global-investops-report – The 2026 InvestOps Report, commissioned by SimCorp, reveals that 70% of buy-side firms are now employing artificial intelligence (AI) to support their front office functions, a significant increase from the previous year when only about 10% were actively exploring AI tools. The report highlights that achieving competitive differentiation through innovation has become the leading driver of technology and operational investments for 2026, surpassing operational efficiency and controlling operating costs. Additionally, vendor stability is identified as the key criterion when evaluating AI solutions for investment management, with firms seeking partners capable of supporting robust data governance and cybersecurity requirements. The report also notes a growing belief that private markets and alternative investments offer significant opportunities for technological innovation, with the number of respondents who believe this has increased by 24 percentage points over the past 12 months, reaching 51% in 2026 compared to 27% in 2025.
- https://www.simcorp.com/about-us/news/2025/AI-must-be-better-integrated-into-investment-process-new-buy-side-survey-by-SimCorp-shows – A new survey by SimCorp reveals that 75% of buy-side organizations understand the potential benefits of integrating artificial intelligence (AI) into their investment processes but require more information on how to do so. The survey, part of the 2025 InvestOps Report, highlights that firms plan to build more standardized data modeling (67%) and consolidate systems for a common data layer (65%) to overcome challenges with their data infrastructure. The report also notes that environmental, social, and governance (ESG) investing continues to be the business area where respondents see the greatest opportunity for technological innovation (58%), particularly in North America (81%).
- https://www.aima.org/article/press-release-front-office-gen-ai-adoption-shifts-from-if-to-when-for-leading-fund-managers-aima-research-finds.html – Research by the Alternative Investment Management Association (AIMA) indicates that 58% of fund managers expect increased use of generative artificial intelligence (Gen AI) in investment processes over the next year, up from 20% in 2023. Additionally, 95% of fund manager respondents reported using Gen AI in their work, up from 86% in 2023, confirming a new era for the industry. The report also notes that 60% of institutional investors would be more likely to invest in a hedge fund that allocates a meaningful portion of its budget to Gen AI research and implementation.
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 the 2026 InvestOps Report, published on January 19, 2026. ([simcorp.com](https://www.simcorp.com/about-us/news/2026/two-thirds-managers-adopt-AI?utm_source=openai)) The findings are recent and have been reported by multiple reputable sources, including SimCorp’s official website and PR Newswire. ([prnewswire.com](https://www.prnewswire.com/news-releases/more-than-two-thirds-of-investment-managers-prominently-using-ai-to-support-front-office-simcorp-study-reveals-302662692.html?utm_source=openai)) However, the Asset Servicing Times article was published on January 20, 2026, which is a day after the original report. This slight delay is acceptable, but the freshness score is slightly reduced due to this minor lag.
Quotes check
Score:
7
Notes:
The article includes a direct quote from Peter Sanderson, CEO of SimCorp: “AI adoption has dramatically shifted from pilots to business-critical applications in the front office.” ([simcorp.com](https://www.simcorp.com/about-us/news/2026/two-thirds-managers-adopt-AI?utm_source=openai)) This quote is consistent across multiple reputable sources, indicating it is likely accurate. However, the exact wording matches the press release verbatim, which raises concerns about potential reuse of content. The Asset Servicing Times article does not provide a direct link to the original source, making independent verification of the quote challenging. Therefore, the score is reduced due to these concerns.
Source reliability
Score:
6
Notes:
The article is published by Asset Servicing Times, a niche publication focusing on asset servicing news. While it is a specialised source, it may not have the same level of credibility as major news organisations. The content is based on a press release from SimCorp, which is a primary source. However, the lack of independent verification and the potential for bias in the press release content necessitate a reduced score.
Plausability check
Score:
8
Notes:
The claims in the article align with industry trends, such as the increasing adoption of AI in the financial sector. The statistics presented are consistent with those found in other reputable sources. However, the reliance on a single source (the press release) without independent verification slightly diminishes the overall credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents recent findings from the 2026 InvestOps Report, indicating a significant increase in AI adoption among buy-side firms. However, the reliance on a single source (the press release) without independent verification, potential reuse of content, and the lack of direct links to original sources raise concerns about the article’s credibility. Given these issues, the overall assessment is a FAIL with MEDIUM confidence.