AI’s Role in Shaping the Future of Pension Funds: A Double-Edged Sword
The post AI’s Role in Shaping the Future of Pension Funds: A Double-Edged Sword appeared on BitcoinEthereumNews.com. TLDR AI set to reshape pension funds, offering tailored outreach and higher returns. While AI can enhance member experience, challenges like false data and cyber threats persist. By 2018, algorithmic trading made up 73% of US equity trades. AI may be the next big wave. In the rapidly advancing world of technology, pension funds are gearing up to harness the potential of artificial intelligence (AI). According to the recent joint report from Mercer and the CFA Institute, while AI promises new horizons for pension management, it isn’t devoid of challenges. A quantum leap in investment analysis Traditionally, pension fund managers have relied on vast sets of data to make informed investment decisions. AI stands to revolutionize this. David Knox, the report’s main author and senior partner at Mercer, believes that AI will have a sweeping impact on pension systems across the globe. “It has the potential to significantly enhance the member experience and retirement outcomes,” says Knox. AI’s data-driven approach could unearth market sentiments, detect emerging patterns, and spotlight untraditional investment opportunities, leading to potentially higher returns. Moreover, AI can enable more nuanced evaluations of environmental, social, and governance (ESG) factors, promoting more ethically sound investments. Personalized outreach and member analysis Beyond investment decisions, pension funds are also eyeing AI for enhanced member communication. By analyzing members’ emails and phone calls, AI could help craft personalized marketing strategies, offering services tailored to each member’s communication style and needs. Cost-cutting and strategy enhancement Automation powered by AI promises significant cost reductions, especially in the middle and back-office functions. As the report suggests, this could diminish the cost differential between passive and active investment strategies. Furthermore, AI’s predictive abilities could prove invaluable in forecasting member reactions to various economic and political shifts, ensuring pension funds remain prepared for diverse scenarios. Potential pitfalls…
The post AI’s Role in Shaping the Future of Pension Funds: A Double-Edged Sword appeared on BitcoinEthereumNews.com.
TLDR AI set to reshape pension funds, offering tailored outreach and higher returns. While AI can enhance member experience, challenges like false data and cyber threats persist. By 2018, algorithmic trading made up 73% of US equity trades. AI may be the next big wave. In the rapidly advancing world of technology, pension funds are gearing up to harness the potential of artificial intelligence (AI). According to the recent joint report from Mercer and the CFA Institute, while AI promises new horizons for pension management, it isn’t devoid of challenges. A quantum leap in investment analysis Traditionally, pension fund managers have relied on vast sets of data to make informed investment decisions. AI stands to revolutionize this. David Knox, the report’s main author and senior partner at Mercer, believes that AI will have a sweeping impact on pension systems across the globe. “It has the potential to significantly enhance the member experience and retirement outcomes,” says Knox. AI’s data-driven approach could unearth market sentiments, detect emerging patterns, and spotlight untraditional investment opportunities, leading to potentially higher returns. Moreover, AI can enable more nuanced evaluations of environmental, social, and governance (ESG) factors, promoting more ethically sound investments. Personalized outreach and member analysis Beyond investment decisions, pension funds are also eyeing AI for enhanced member communication. By analyzing members’ emails and phone calls, AI could help craft personalized marketing strategies, offering services tailored to each member’s communication style and needs. Cost-cutting and strategy enhancement Automation powered by AI promises significant cost reductions, especially in the middle and back-office functions. As the report suggests, this could diminish the cost differential between passive and active investment strategies. Furthermore, AI’s predictive abilities could prove invaluable in forecasting member reactions to various economic and political shifts, ensuring pension funds remain prepared for diverse scenarios. Potential pitfalls…
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