Ten predictions on AI in asset management for 2024, plus a bonus prediction.

1. Your board will get antsy for you “to do AI.”

2. You’ll need a departmental policy as to what can be done with public LLM’s like ChatGPT or Bing or Co-pilot and what cannot be done. Compliance will be involved. The frontline (analysts and PM‘s) will pull you in this direction.

3. The common refrain from the IT side of your firm will be, “Isn’t xyz good enough?”

4. Each bulge bracket will launch their version of AI inside their portal. I don’t think they should, but that’s another conversation.

5. Non-bulge bracket firms will partner with specialist AI firm’s to power their portals with AI to stay at tech parity with the bulge brackets. Again, I don’t think it’s a wise move.

6. Many point solutions (apps) will gain massive traction at affordable price points. Buy vs. build will be very attractive in 2024.

7. The incumbent providers of data and analysis (Bloomberg, FactSet, S&P Global, Reuters, and so on) will release AI tools that leverage their data.

8. The incumbents will not be disrupted (their moat is insane), but the AI helpers they launch in 2024 will underwhelm.

9. Late in 2024, a domain-specific model for finance, will perform better than a general-purpose model. It will likely be open-source.

10. Consultants will have a heyday selling advice, planning, and white papers, but not delivering AI capabilities a firm can use.

11. I’ll still be here and happy to help any way I can.