The asset management industry is witnessing a transformation akin to Uber’s disruption of the taxi industry—technology-driven platforms promising greater efficiency and accessibility. AI and machine learning are now capable of processing vast data sets and executing trades faster than ever before.
But can machines truly replace the judgment and ethical oversight that human fund managers provide? This article explores the evolving role of AI in asset management and asks whether the future belongs to fully automated systems, human managers, or a blend of both.
The Rise of AI in Asset Management
AI is revolutionizing asset management by enhancing decision-making, streamlining operations, and delivering personalized investment solutions. Through machine learning algorithms, natural language processing (NLP), and advanced data analytics, AI helps asset managers process vast datasets, identify investment opportunities, and optimize portfolio performance (Morningstar, 2024).
For instance, JPMorgan Chase reported that its advanced AI tools significantly enhanced its performance during the April 2025 stock market turmoil. The bank’s AI, particularly the Coach AI tool, enabled faster, more personalized service to wealthy clients by retrieving research and anticipating investment queries (Reuters, 2025).
Enhancing Efficiency and Risk Management
AI significantly improves operational efficiency by automating routine tasks and streamlining workflows. This automation results in cost reductions and improved accuracy, freeing up human resources for more strategic activities. By deploying AI in departments such as marketing, finance, and human resources, asset managers can achieve substantial gains in efficiency and productivity (Morningstar, 2024).
Moreover, AI’s advanced analytics capabilities enable more precise risk assessment and mitigation. Asset managers can proactively address potential risks and adjust strategies to protect portfolios (Imperial Asset Capital, n.d.).
How AI Disrupts and Supports Traditional Asset Management
AI is reshaping asset management by both disrupting traditional tasks and supporting human fund managers.
Disruption: AI automates routine processes like strategy back testing, portfolio rebalancing, and risk monitoring, doing them faster and more accurately. Some hedge funds now rely on AI to drive core investment decisions, challenging the traditional human-led approach (Business Insider, 2025). AI platforms also reduce costs and increase accessibility, disrupting fee models and client relationships (Morningstar, 2024).
Support: Rather than replacing humans, AI enhances fund managers’ capabilities by providing data-driven insights and freeing them to focus on strategic and ethical decisions. It improves risk management by flagging early warnings and personalizes client interactions—all while preserving the essential human connection (Camilleri, 2023).
Together, AI disrupts and supports, creating a hybrid model where man and machine collaborate to navigate complex markets.
The Human Element in Asset Management
Despite the advancements in AI, human fund managers remain integral to the asset management industry. Their ability to interpret ambiguous information, assess corporate governance quality, or engage with company management is not easily replicated by code. Ethical considerations also come into play. Who is accountable when an AI-driven strategy underperforms or behaves unexpectedly? Investors often seek reassurance, and the human element remains key to trust and fiduciary duty especially in a regulated environment like South Africa (Camilleri, 2023; Kurshan et al., 2021).
A Hybrid Future: The Rise of the Cyborg Manager
Rather than viewing AI and humans as competitors, a more constructive outlook sees them as collaborators. The future of asset management likely belongs to “cyborg” managers—professionals who use AI as a tool to enhance decision-making, not replace it.
This hybrid approach is already gaining traction. Large global asset managers are integrating AI into their research and trading desks, allowing machines to augment human insight. Meanwhile, regulatory bodies are evolving to ensure the use of AI in finance aligns with ethical and governance standards (Camilleri, 2023).
Conclusion: Disruption, Not Displacement
The Uberization of asset management is real, and AI is undeniably changing the game. But this is less about full replacement and more about redefinition. Human fund managers are not going extinct, however, they do need to evolve. Those who embrace technology while sharpening their human-centric skills like empathy, ethical judgment, and strategic foresight, will remain indispensable in this new paradigm.
South Africa, with its well-regulated financial system and growing appetite for fintech innovation, is well-positioned to shape a future where man and machine work side-by-side. The challenge isn’t resisting AI, it’s learning to utilise it wisely (Kurshan et al., 2021; Camilleri, 2023).
References
- Business Insider. (2025) How hedge funds Citadel, WorldQuant, and Freestone Grove are using AI. Available at: https://www.businessinsider.com/how-citadel-worldquant-freestone-grove-use-ai-2025-5
- Camilleri, M.A., 2023. Artificial intelligence governance: Ethical considerations and implications for social responsibility. Expert Systems, 41(7), p.e13406. Available at: https://onlinelibrary.wiley.com/doi/10.1111/exsy.13406
- Imperial Asset Capital. (n.d.). The Role of Artificial Intelligence in Asset Management. Retrieved from https://imperialassetcapital.com/the-role-of-artificial-intelligence-in-asset-management/
- Kurshan, E., Chen, J., Storchan, V., and Shen, H., 2021. On the current and emerging challenges of developing fair and ethical AI solutions in financial services. arXiv. Available at: https://arxiv.org/abs/2111.01306
- Morningstar. (2024, July 1). AI in Asset Management: Key Trends, Challenges, and Opportunities. Retrieved from https://www.morningstar.com/business/insights/blog/markets/ai-in-asset-management
- Reuters. (2025, May 5). JPMorgan says AI helped boost sales, add clients in market turmoil. Retrieved from https://www.reuters.com/business/finance/jpmorgan-says-ai-helped-boost-sales-add-clients-market-turmoil-2025-05-05/
