Vast majority (66%) of fund managers believe their firms are over-investing in AI, while 25% believe their organizations are not investing enough, according to new global AI investment research from Clearwater Analytics.
The research, commissioned by Clearwater Analytics and conducted by independent research agency Pureprofile in March 2026, surveyed 178 senior executives at asset management firms, including multi-asset, fixed income and equity fund managers, insurance asset managers, private markets fund managers and hedge funds. Respondents were based in Europe — including the UK, Ireland, Germany, France, Sweden and Denmark — the US and Asia Pacific.
The findings point to a divide over AI spending levels even as budgets continue to expand. Sixty-three percent of firms increased AI spending by more than 50% over the past 12 months, and no firm reported a budget decrease. Thirteen percent of fund managers reported AI investment increases of more than 100% in the past year, while 50% saw expenditure rise between 50% and 99%. Four percent held budgets steady.
The research also indicates that AI adoption in asset management predates the recent surge in spending. Fifty-six percent of fund managers began integrating AI four to five years ago, and 34% started two to three years ago. Nine percent of fund managers surveyed only began their AI integration within the past year.
AI use extends across core operational areas, according to the research. In investment decisions, 43% of managers use AI for 25% to 49% of their decision-making, and 10% rely on it for the majority of their investment calls. In risk management, 38% apply AI to 25% to 49% of their risk processes, and 8% use it for the majority of risk assessments. In operations, 34% integrate AI into 25% to 49% of operational decisions, and 6% use AI for more than half of their operational workflows.
Souvik Das, CTO at Clearwater Analytics, said the research reflects an industry working through how to apply AI effectively. “What our research reveals is an industry wrestling with how to get AI right. Increasing the budget is the easy part,” Das added.
Das also mentioned that Clearwater is working with clients on the underlying data infrastructure. “At Clearwater, we are helping clients navigate exactly this challenge, by embedding AI directly into our platform and automating the data reconciliation and investment accounting lifecycles that form the foundation of everything else.”
Clearwater Analytics is an agentic investment management platform built on a single, continuously reconciled investment record, supporting more than $10 trillion in assets globally for insurers, asset managers, hedge funds, banks, corporations and governments.
