Driving Investment Edge with AI in Portfolio Management
Driving Investment Edge with AI in Portfolio Management By: Nitin Kumar March 30, 2026 Share: AI in portfolio management is no longer a “nice to have” but a necessity as investment complexity rises and traditional alpha declines. With global AUM expected to reach $200 trillion by 2030 and nearly 85% of active managers underperforming benchmarks, firms are rethinking how they make investment decisions. The use of AI in portfolio management is a solution to this problem, where the firm can enhance its ability to improve the precision of its investment decision-making process. At the same time, the firm can manage exponentially increasing data sets consistently. As background, in the context of the more data-intensive and interconnected investment marketplace, firms that are using AI in their decision-making and investment process are more likely to be able to transform information into investment alpha, as opposed to simply gathering more information. AI i...