Guide

The State of Applied AI in Fund Administration

ai survey report cover

AI in a Rapidly Evolving Landscape

Withum, together with DwellFi and Cole-Frieman & Mallon, are pleased to announce the release of a comprehensive survey report titled ‘The State of Applied AI in Fund Administration,’ conducted by Alternatives Watch.

The survey gathered responses from senior executives at fund administrators ranging in AUA, and reveals a rapidly evolving landscape where Gen AI is becoming a critical differentiator.

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What’s Inside?

Gen AI as a Competitive Necessity

Over half of the respondents (57.14%) believe that AI is essential to stay competitive, and 50% see it as crucial for future growth. This sentiment is echoed by industry leaders who recognize AI’s ability to streamline complex processes and deliver actionable insights from fragmented data sources.

Strategic Implementation

Nearly three-fourths (71.43%) of firms are investing in AI tools and infrastructure, with many establishing dedicated AI Centers of Excellence and partnering with online learning platforms for staff training. This strategic approach ensures that firms are well-prepared to leverage AI’s full potential.

M&A Activity and Valuation

Nearly two-thirds of respondents are collaborating with AI vendors and partners (64.29%) and developing a clear AI strategy (64.29%). In an environment of mergers and acquisitions, AI stands out as a compelling differentiator. By automating labor-intensive workflows, AI enables fund administrators to scale efficiently without an increase in headcount improving operational efficiency and firm valuations.

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